Discounted Cash Flow (DCF) Analysis Levered

Griffon Corporation (GFF)

$32.28

+0.09 (+0.28%)

All numbers are in Millions, Currency in USD

Stock DCF: -2.44 | 32.28 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,977.92	2,209.29	2,407.52	2,270.63	2,848.49	3,136.43	3,453.47	3,802.56	4,186.94	4,610.17
Revenue (%)
Operating Cash Flow	20.82	111.84	134.01	111.77	69.44	119.44	131.52	144.81	159.45	175.57
Operating Cash Flow (%)
Capital Expenditure	-50.14	-45.36	-49	-36.95	-42.49	-61.11	-67.29	-74.09	-81.58	-89.83
Capital Expenditure (%)
Free Cash Flow	-29.32	66.47	85.01	74.82	26.95	58.33	64.23	70.72	77.87	85.74

Weighted Average Cost Of Capital

Share price	$ 32.28
Beta	1.514
Diluted Shares Outstanding	53.37
Cost of Debt
Tax Rate	29.28
After-tax Cost of Debt	3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.843
Total Debt	1,764.74
Total Equity	1,722.75
Total Capital	3,487.50
Debt Weighting	50.60
Equity Weighting	49.40
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,977.92	2,209.29	2,407.52	2,270.63	2,848.49	3,136.43	3,453.47	3,802.56	4,186.94	4,610.17
Operating Cash Flow	20.82	111.84	134.01	111.77	69.44	119.44	131.52	144.81	159.45	175.57
Capital Expenditure	-50.14	-45.36	-49	-36.95	-42.49	-61.11	-67.29	-74.09	-81.58	-89.83
Free Cash Flow	-29.32	66.47	85.01	74.82	26.95	58.33	64.23	70.72	77.87	85.74
WACC
PV LFCF						54.48	56.02	57.61	59.25	60.93
SUM PV LFCF										288.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.07
Free cash flow (t + 1)	87.45
Terminal Value	1,724.92
Present Value of Terminal Value	1,225.83

Intrinsic Value

Enterprise Value	1,514.13
Net Debt	1,644.56
Equity Value	-130.44
Shares Outstanding	53.37
Equity Value Per Share	-2.44