Discounted Cash Flow (DCF) Analysis Levered

Genuine Parts Company (GPC)

$153.35

+4.13 (+2.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 192.28 | 153.35 | undervalue

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 18,735.0719,392.3016,537.4318,870.5122,095.9723,200.0424,359.2825,576.4426,854.4228,196.26
Revenue (%)
Operating Cash Flow 1,145.16892.012,019.561,258.291,466.971,681.141,765.141,853.341,945.942,043.18
Operating Cash Flow (%)
Capital Expenditure -232.42-297.87-153.50-266.14-339.63-308.66-324.09-340.28-357.28-375.13
Capital Expenditure (%)
Free Cash Flow 912.74594.141,866.06992.151,127.341,372.481,441.051,513.061,588.661,668.04

Weighted Average Cost Of Capital

Share price $ 153.35
Beta 0.898
Diluted Shares Outstanding 142.32
Cost of Debt
Tax Rate 24.79
After-tax Cost of Debt 1.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.994
Total Debt 4,164.84
Total Equity 21,825.08
Total Capital 25,989.92
Debt Weighting 16.02
Equity Weighting 83.98
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 18,735.0719,392.3016,537.4318,870.5122,095.9723,200.0424,359.2825,576.4426,854.4228,196.26
Operating Cash Flow 1,145.16892.012,019.561,258.291,466.971,681.141,765.141,853.341,945.942,043.18
Capital Expenditure -232.42-297.87-153.50-266.14-339.63-308.66-324.09-340.28-357.28-375.13
Free Cash Flow 912.74594.141,866.06992.151,127.341,372.481,441.051,513.061,588.661,668.04
WACC
PV LFCF 1,283.531,260.321,237.531,215.161,193.19
SUM PV LFCF 6,189.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.93
Free cash flow (t + 1) 1,701.40
Terminal Value 34,511.25
Present Value of Terminal Value 24,686.69

Intrinsic Value

Enterprise Value 30,876.42
Net Debt 3,511.38
Equity Value 27,365.04
Shares Outstanding 142.32
Equity Value Per Share 192.28