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 1,474.741,653.291,646.041,650.111,987.612,148.452,322.302,510.232,713.362,932.93
Revenue (%)
Operating Cash Flow 337.86367.99418.73394.03456.90504.77545.62589.77637.49689.08
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 297.67314.13290.78322.70323.33398.21430.43465.26502.91543.61

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 1,474.741,653.291,646.041,650.111,987.612,148.452,322.302,510.232,713.362,932.93
Operating Cash Flow 337.86367.99418.73394.03456.90504.77545.62589.77637.49689.08
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 297.67314.13290.78322.70323.33398.21430.43465.26502.91543.61
WACC
PV LFCF 345.55347.94350.34352.76355.20
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