Discounted Cash Flow (DCF) Analysis Levered

Franchise Group, Inc. (FRG)

$32.1

-0.28 (-0.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 268,698.95 | 32.1 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 173.99174.87132.552,152.503,255.2015,881.3477,481.19378,011.731,844,226.698,997,530.48
Revenue (%)
Operating Cash Flow 32.4527.6517.13241.49105.971,964.689,585.2046,763.82228,149.251,113,084.32
Operating Cash Flow (%)
Capital Expenditure -15.07-8.31-3.17-41.52-46.96-609.15-2,971.88-14,499.07-70,737.40-345,110.45
Capital Expenditure (%)
Free Cash Flow 17.3719.3313.96199.9759.011,355.536,613.3232,264.76157,411.85767,973.87

Weighted Average Cost Of Capital

Share price $ 32.1
Beta 1.710
Diluted Shares Outstanding 40.96
Cost of Debt
Tax Rate -129.62
After-tax Cost of Debt 5.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.712
Total Debt 2,600.07
Total Equity 1,314.95
Total Capital 3,915.02
Debt Weighting 66.41
Equity Weighting 33.59
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 173.99174.87132.552,152.503,255.2015,881.3477,481.19378,011.731,844,226.698,997,530.48
Operating Cash Flow 32.4527.6517.13241.49105.971,964.689,585.2046,763.82228,149.251,113,084.32
Capital Expenditure -15.07-8.31-3.17-41.52-46.96-609.15-2,971.88-14,499.07-70,737.40-345,110.45
Free Cash Flow 17.3719.3313.96199.9759.011,355.536,613.3232,264.76157,411.85767,973.87
WACC
PV LFCF 1,176.715,348.8024,313.30110,517.68502,365.34
SUM PV LFCF 690,906.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.33
Free cash flow (t + 1) 783,333.34
Terminal Value 14,696,685.63
Present Value of Terminal Value 10,318,433.22

Intrinsic Value

Enterprise Value 11,009,339.85
Net Debt 2,307.35
Equity Value 11,007,032.49
Shares Outstanding 40.96
Equity Value Per Share 268,698.95