Discounted Cash Flow (DCF) Analysis Levered

Graco Inc. (GGG)

$69.97

+1.51 (+2.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 54.71 | 69.97 | overvalue

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	1,474.74	1,653.29	1,646.04	1,650.11	1,987.61	2,148.45	2,322.30	2,510.23	2,713.36	2,932.93
Revenue (%)
Operating Cash Flow	337.86	367.99	418.73	394.03	456.90	504.77	545.62	589.77	637.49	689.08
Operating Cash Flow (%)
Capital Expenditure	-40.19	-53.85	-127.95	-71.34	-133.57	-106.56	-115.18	-124.50	-134.58	-145.47
Capital Expenditure (%)
Free Cash Flow	297.67	314.13	290.78	322.70	323.33	398.21	430.43	465.26	502.91	543.61

Weighted Average Cost Of Capital

Share price	$ 69.97
Beta	0.806
Diluted Shares Outstanding	174.53
Cost of Debt
Tax Rate	13.49
After-tax Cost of Debt	3.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.409
Total Debt	226.11
Total Equity	12,211.58
Total Capital	12,437.70
Debt Weighting	1.82
Equity Weighting	98.18
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	1,474.74	1,653.29	1,646.04	1,650.11	1,987.61	2,148.45	2,322.30	2,510.23	2,713.36	2,932.93
Operating Cash Flow	337.86	367.99	418.73	394.03	456.90	504.77	545.62	589.77	637.49	689.08
Capital Expenditure	-40.19	-53.85	-127.95	-71.34	-133.57	-106.56	-115.18	-124.50	-134.58	-145.47
Free Cash Flow	297.67	314.13	290.78	322.70	323.33	398.21	430.43	465.26	502.91	543.61
WACC
PV LFCF						345.55	347.94	350.34	352.76	355.20
SUM PV LFCF										1,880.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.35
Free cash flow (t + 1)	554.48
Terminal Value	10,364.16
Present Value of Terminal Value	7,269.83

Intrinsic Value

Enterprise Value	9,150.37
Net Debt	-398.19
Equity Value	9,548.56
Shares Outstanding	174.53
Equity Value Per Share	54.71