Discounted Cash Flow (DCF) Analysis Levered
Group 1 Automotive, Inc. (GPI)
$291.18
+9.08 (+3.22%)
All numbers are in Millions, Currency in USD
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 | 11,601.36 | 12,043.80 | 10,851.80 | 13,481.90 | 16,222.10 | 17,782.59 | 19,493.19 | 21,368.34 | 23,423.87 | 25,677.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 269.98 | 370.90 | 805.40 | 1,259.60 | 585.90 | 916.98 | 1,005.19 | 1,101.89 | 1,207.88 | 1,324.08 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -141.03 | -191.80 | -103.20 | -143.60 | -155.50 | -205.67 | -225.45 | -247.14 | -270.91 | -296.98 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 128.95 | 179.10 | 702.20 | 1,116 | 430.40 | 711.31 | 779.74 | 854.75 | 936.97 | 1,027.10 |
Weighted Average Cost Of Capital
| Share price | $ 291.18 |
|---|---|
| Beta | 1.426 |
| Diluted Shares Outstanding | 15.50 |
| Cost of Debt | |
| Tax Rate | 23.73 |
| After-tax Cost of Debt | 3.17% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.887 |
| Total Debt | 3,347.90 |
| Total Equity | 4,513.29 |
| Total Capital | 7,861.19 |
| Debt Weighting | 42.59 |
| Equity Weighting | 57.41 |
| 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 | 11,601.36 | 12,043.80 | 10,851.80 | 13,481.90 | 16,222.10 | 17,782.59 | 19,493.19 | 21,368.34 | 23,423.87 | 25,677.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 269.98 | 370.90 | 805.40 | 1,259.60 | 585.90 | 916.98 | 1,005.19 | 1,101.89 | 1,207.88 | 1,324.08 |
| Capital Expenditure | -141.03 | -191.80 | -103.20 | -143.60 | -155.50 | -205.67 | -225.45 | -247.14 | -270.91 | -296.98 |
| Free Cash Flow | 128.95 | 179.10 | 702.20 | 1,116 | 430.40 | 711.31 | 779.74 | 854.75 | 936.97 | 1,027.10 |
| WACC | ||||||||||
| PV LFCF | 661.07 | 673.48 | 686.12 | 699 | 712.12 | |||||
| SUM PV LFCF | 3,431.79 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.60 |
| Free cash flow (t + 1) | 1,047.64 |
| Terminal Value | 18,707.89 |
| Present Value of Terminal Value | 12,970.70 |
Intrinsic Value
| Enterprise Value | 16,402.49 |
|---|---|
| Net Debt | 3,300 |
| Equity Value | 13,102.49 |
| Shares Outstanding | 15.50 |
| Equity Value Per Share | 845.32 |