Discounted Cash Flow (DCF) Analysis Levered

The Gorman-Rupp Company (GRC)

$26.5372

+0.65 (+2.50%)
All numbers are in Millions, Currency in USD
Stock DCF: 37.42 | 26.5372 | 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 414.33398.18348.97378.32521.03559.94601.76646.70695746.91
Revenue (%)
Operating Cash Flow 41.2162.1751.1645.4413.6861.4466.0270.9576.2581.95
Operating Cash Flow (%)
Capital Expenditure -10.95-10.91-8-9.75-17.99-15.35-16.49-17.73-19.05-20.47
Capital Expenditure (%)
Free Cash Flow 30.2651.2643.1635.69-4.3046.0949.5353.2357.2161.48

Weighted Average Cost Of Capital

Share price $ 26.5,372
Beta 0.799
Diluted Shares Outstanding 26.17
Cost of Debt
Tax Rate 19.30
After-tax Cost of Debt 3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.478
Total Debt 436.83
Total Equity 694.53
Total Capital 1,131.36
Debt Weighting 38.61
Equity Weighting 61.39
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 414.33398.18348.97378.32521.03559.94601.76646.70695746.91
Operating Cash Flow 41.2162.1751.1645.4413.6861.4466.0270.9576.2581.95
Capital Expenditure -10.95-10.91-8-9.75-17.99-15.35-16.49-17.73-19.05-20.47
Free Cash Flow 30.2651.2643.1635.69-4.3046.0949.5353.2357.2161.48
WACC
PV LFCF 43.5044.1244.7445.3846.03
SUM PV LFCF 223.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.96
Free cash flow (t + 1) 62.71
Terminal Value 1,583.52
Present Value of Terminal Value 1,185.53

Intrinsic Value

Enterprise Value 1,409.29
Net Debt 430.04
Equity Value 979.25
Shares Outstanding 26.17
Equity Value Per Share 37.42