Discounted Cash Flow (DCF) Analysis Levered
W.W. Grainger, Inc. (GWW)
$479.115
+9.85 (+2.10%)
All numbers are in Millions, Currency in USD
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 | 10,424.86 | 11,221 | 11,486 | 11,797 | 13,022 | 13,773.70 | 14,568.80 | 15,409.79 | 16,299.33 | 17,240.22 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,056.56 | 1,057 | 1,042 | 1,123 | 937 | 1,249.04 | 1,321.15 | 1,397.41 | 1,478.08 | 1,563.40 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -237.28 | -239 | -221 | -197 | -255 | -274.32 | -290.16 | -306.91 | -324.63 | -343.37 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 819.27 | 818 | 821 | 926 | 682 | 974.72 | 1,030.99 | 1,090.50 | 1,153.45 | 1,220.03 |
Weighted Average Cost Of Capital
Share price | $ 479.115 |
---|---|
Beta | 1.192 |
Diluted Shares Outstanding | 52.20 |
Cost of Debt | |
Tax Rate | 29.76 |
After-tax Cost of Debt | 2.21% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.380 |
Total Debt | 2,762 |
Total Equity | 25,009.80 |
Total Capital | 27,771.80 |
Debt Weighting | 9.95 |
Equity Weighting | 90.05 |
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 | 10,424.86 | 11,221 | 11,486 | 11,797 | 13,022 | 13,773.70 | 14,568.80 | 15,409.79 | 16,299.33 | 17,240.22 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,056.56 | 1,057 | 1,042 | 1,123 | 937 | 1,249.04 | 1,321.15 | 1,397.41 | 1,478.08 | 1,563.40 |
Capital Expenditure | -237.28 | -239 | -221 | -197 | -255 | -274.32 | -290.16 | -306.91 | -324.63 | -343.37 |
Free Cash Flow | 819.27 | 818 | 821 | 926 | 682 | 974.72 | 1,030.99 | 1,090.50 | 1,153.45 | 1,220.03 |
WACC | ||||||||||
PV LFCF | 904.44 | 887.68 | 871.23 | 855.08 | 839.23 | |||||
SUM PV LFCF | 4,357.66 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.77 |
Free cash flow (t + 1) | 1,244.43 |
Terminal Value | 21,567.30 |
Present Value of Terminal Value | 14,835.64 |
Intrinsic Value
Enterprise Value | 19,193.31 |
---|---|
Net Debt | 2,521 |
Equity Value | 16,672.31 |
Shares Outstanding | 52.20 |
Equity Value Per Share | 319.39 |