Discounted Cash Flow (DCF) Analysis Levered

Graco Inc. (GGG)

$71.69

+1.14 (+1.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 50.86 | 71.69 | 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	1,653.29	1,646.04	1,650.11	1,987.61	2,143.52	2,294.13	2,455.33	2,627.85	2,812.50	3,010.12
Revenue (%)
Operating Cash Flow	367.99	418.73	394.04	456.90	377.39	514.66	550.83	589.53	630.95	675.29
Operating Cash Flow (%)
Capital Expenditure	-53.85	-127.95	-71.34	-133.57	-201.16	-144.34	-154.48	-165.34	-176.95	-189.39
Capital Expenditure (%)
Free Cash Flow	314.13	290.78	322.70	323.33	176.23	370.32	396.34	424.19	454	485.90

Weighted Average Cost Of Capital

Share price	$ 71.69
Beta	0.799
Diluted Shares Outstanding	172.89
Cost of Debt
Tax Rate	18.57
After-tax Cost of Debt	6.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.137
Total Debt	117.03
Total Equity	12,394.70
Total Capital	12,511.73
Debt Weighting	0.94
Equity Weighting	99.06
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	1,653.29	1,646.04	1,650.11	1,987.61	2,143.52	2,294.13	2,455.33	2,627.85	2,812.50	3,010.12
Operating Cash Flow	367.99	418.73	394.04	456.90	377.39	514.66	550.83	589.53	630.95	675.29
Capital Expenditure	-53.85	-127.95	-71.34	-133.57	-201.16	-144.34	-154.48	-165.34	-176.95	-189.39
Free Cash Flow	314.13	290.78	322.70	323.33	176.23	370.32	396.34	424.19	454	485.90
WACC
PV LFCF						345.68	345.34	345.01	344.67	344.34
SUM PV LFCF										1,725.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.13
Free cash flow (t + 1)	495.62
Terminal Value	9,661.13
Present Value of Terminal Value	6,846.56

Intrinsic Value

Enterprise Value	8,571.60
Net Debt	-222.16
Equity Value	8,793.77
Shares Outstanding	172.89
Equity Value Per Share	50.86