Discounted Cash Flow (DCF) Analysis Levered
W.W. Grainger, Inc. (GWW)
$706.48
+1.50 (+0.21%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 11,486 | 11,797 | 13,022 | 15,228 | 16,752.43 | 18,429.48 | 20,274.40 | 22,304.02 | 24,536.81 | 26,993.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,042 | 1,123 | 937 | 1,333 | 1,446.59 | 1,591.40 | 1,750.72 | 1,925.97 | 2,118.78 | 2,330.88 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -221 | -197 | -255 | -256 | -302.94 | -333.27 | -366.63 | -403.33 | -443.71 | -488.13 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 821 | 926 | 682 | 1,077 | 1,143.65 | 1,258.14 | 1,384.09 | 1,522.64 | 1,675.07 | 1,842.76 |
Weighted Average Cost Of Capital
| Share price | $ 706.48 |
|---|---|
| Beta | 1.192 |
| Diluted Shares Outstanding | 51.10 |
| Cost of Debt | |
| Tax Rate | 27.91 |
| After-tax Cost of Debt | 3.60% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.370 |
| Total Debt | 2,683 |
| Total Equity | 36,101.13 |
| Total Capital | 38,784.13 |
| Debt Weighting | 6.92 |
| Equity Weighting | 93.08 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 11,486 | 11,797 | 13,022 | 15,228 | 16,752.43 | 18,429.48 | 20,274.40 | 22,304.02 | 24,536.81 | 26,993.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,042 | 1,123 | 937 | 1,333 | 1,446.59 | 1,591.40 | 1,750.72 | 1,925.97 | 2,118.78 | 2,330.88 |
| Capital Expenditure | -221 | -197 | -255 | -256 | -302.94 | -333.27 | -366.63 | -403.33 | -443.71 | -488.13 |
| Free Cash Flow | 821 | 926 | 682 | 1,077 | 1,143.65 | 1,258.14 | 1,384.09 | 1,522.64 | 1,675.07 | 1,842.76 |
| WACC | ||||||||||
| PV LFCF | 1,143.65 | 1,154.57 | 1,165.60 | 1,176.73 | 1,187.97 | 1,199.32 | ||||
| SUM PV LFCF | 5,884.19 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.97 |
| Free cash flow (t + 1) | 1,879.61 |
| Terminal Value | 26,967.20 |
| Present Value of Terminal Value | 17,550.97 |
Intrinsic Value
| Enterprise Value | 23,435.16 |
|---|---|
| Net Debt | 2,222 |
| Equity Value | 21,213.16 |
| Shares Outstanding | 51.10 |
| Equity Value Per Share | 415.13 |