Discounted Cash Flow (DCF) Analysis Levered

Group 1 Automotive, Inc. (GPI)

$149.32

+2.32 (+1.58%)
All numbers are in Millions, Currency in USD
Stock DCF: 585.91 | 149.32 | undervalue

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 11,123.7211,601.3612,043.8010,851.8013,481.9014,238.4715,037.4915,881.3516,772.5717,713.80
Revenue (%)
Operating Cash Flow 198.92269.98370.90805.401,259.60682.30720.59761.03803.73848.84
Operating Cash Flow (%)
Capital Expenditure -215.83-141.03-191.80-103.20-143.60-192.63-203.44-214.86-226.92-239.65
Capital Expenditure (%)
Free Cash Flow -16.91128.95179.10702.201,116489.66517.14546.16576.81609.18

Weighted Average Cost Of Capital

Share price $ 149.32
Beta 1.417
Diluted Shares Outstanding 17.80
Cost of Debt
Tax Rate 31.07
After-tax Cost of Debt 2.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.655
Total Debt 2,849.20
Total Equity 2,657.90
Total Capital 5,507.10
Debt Weighting 51.74
Equity Weighting 48.26
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 11,123.7211,601.3612,043.8010,851.8013,481.9014,238.4715,037.4915,881.3516,772.5717,713.80
Operating Cash Flow 198.92269.98370.90805.401,259.60682.30720.59761.03803.73848.84
Capital Expenditure -215.83-141.03-191.80-103.20-143.60-192.63-203.44-214.86-226.92-239.65
Free Cash Flow -16.91128.95179.10702.201,116489.66517.14546.16576.81609.18
WACC
PV LFCF 461.12458.61456.11453.63451.16
SUM PV LFCF 2,280.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.19
Free cash flow (t + 1) 621.37
Terminal Value 14,829.73
Present Value of Terminal Value 10,982.85

Intrinsic Value

Enterprise Value 13,263.49
Net Debt 2,834.30
Equity Value 10,429.19
Shares Outstanding 17.80
Equity Value Per Share 585.91