Discounted Cash Flow (DCF) Analysis Levered

Goosehead Insurance, Inc (GSHD)

$36.99

-1.05 (-2.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 107.20 | 36.99 | 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 42.7160.1577.49117.01151.31208.05286.05393.30540.77743.53
Revenue (%)
Operating Cash Flow 13.5410.2721.2424.6435.4450.2269.0494.93130.53179.47
Operating Cash Flow (%)
Capital Expenditure -6.45-2.24-4.10-10.37-15.41-17.96-24.70-33.95-46.69-64.19
Capital Expenditure (%)
Free Cash Flow 7.098.0317.1414.2820.0432.2644.3560.9883.84115.28

Weighted Average Cost Of Capital

Share price $ 36.99
Beta 1.016
Diluted Shares Outstanding 16.79
Cost of Debt
Tax Rate 10.01
After-tax Cost of Debt 1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.552
Total Debt 174.96
Total Equity 620.88
Total Capital 795.84
Debt Weighting 21.98
Equity Weighting 78.02
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 42.7160.1577.49117.01151.31208.05286.05393.30540.77743.53
Operating Cash Flow 13.5410.2721.2424.6435.4450.2269.0494.93130.53179.47
Capital Expenditure -6.45-2.24-4.10-10.37-15.41-17.96-24.70-33.95-46.69-64.19
Free Cash Flow 7.098.0317.1414.2820.0432.2644.3560.9883.84115.28
WACC
PV LFCF 30.1538.7449.7963.9982.23
SUM PV LFCF 264.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.99
Free cash flow (t + 1) 117.58
Terminal Value 2,356.35
Present Value of Terminal Value 1,680.83

Intrinsic Value

Enterprise Value 1,945.73
Net Debt 146.44
Equity Value 1,799.29
Shares Outstanding 16.79
Equity Value Per Share 107.20