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
Stock DCF: 319.39 | 479.115 | overvalue

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 10,424.8611,22111,48611,79713,02213,773.7014,568.8015,409.7916,299.3317,240.22
Revenue (%)
Operating Cash Flow 1,056.561,0571,0421,1239371,249.041,321.151,397.411,478.081,563.40
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 819.27818821926682974.721,030.991,090.501,153.451,220.03

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 10,424.8611,22111,48611,79713,02213,773.7014,568.8015,409.7916,299.3317,240.22
Operating Cash Flow 1,056.561,0571,0421,1239371,249.041,321.151,397.411,478.081,563.40
Capital Expenditure -237.28-239-221-197-255-274.32-290.16-306.91-324.63-343.37
Free Cash Flow 819.27818821926682974.721,030.991,090.501,153.451,220.03
WACC
PV LFCF 904.44887.68871.23855.08839.23
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