Discounted Cash Flow (DCF) Analysis Levered

Goosehead Insurance, Inc (GSHD)

$78.47

+3.79 (+5.08%)

All numbers are in Millions, Currency in USD

Stock DCF: 66.81 | 78.47 | overvalue

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	60.15	77.49	117.01	151.31	209.39	286.62	392.33	537.04	735.12	1,006.25
Revenue (%)
Operating Cash Flow	10.27	21.24	24.64	35.44	35.72	60.79	83.21	113.90	155.90	213.41
Operating Cash Flow (%)
Capital Expenditure	-2.24	-4.10	-10.37	-15.41	-12.61	-19.54	-26.75	-36.61	-50.11	-68.60
Capital Expenditure (%)
Free Cash Flow	8.03	17.14	14.28	20.04	23.11	41.25	56.46	77.29	105.79	144.81

Weighted Average Cost Of Capital

Share price	$ 78.47
Beta	1.198
Diluted Shares Outstanding	21.77
Cost of Debt
Tax Rate	48.72
After-tax Cost of Debt	1.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.127
Total Debt	165.16
Total Equity	1,708.53
Total Capital	1,873.69
Debt Weighting	8.81
Equity Weighting	91.19
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	60.15	77.49	117.01	151.31	209.39	286.62	392.33	537.04	735.12	1,006.25
Operating Cash Flow	10.27	21.24	24.64	35.44	35.72	60.79	83.21	113.90	155.90	213.41
Capital Expenditure	-2.24	-4.10	-10.37	-15.41	-12.61	-19.54	-26.75	-36.61	-50.11	-68.60
Free Cash Flow	8.03	17.14	14.28	20.04	23.11	41.25	56.46	77.29	105.79	144.81
WACC
PV LFCF						37.71	47.20	59.08	73.94	92.54
SUM PV LFCF										310.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.37
Free cash flow (t + 1)	147.71
Terminal Value	2,004.17
Present Value of Terminal Value	1,280.69

Intrinsic Value

Enterprise Value	1,591.15
Net Debt	136.42
Equity Value	1,454.73
Shares Outstanding	21.77
Equity Value Per Share	66.81