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
Stock DCF: 415.13 | 706.48 | overvalue

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 11,48611,79713,02215,22816,752.4318,429.4820,274.4022,304.0224,536.8126,993.13
Revenue (%)
Operating Cash Flow 1,0421,1239371,3331,446.591,591.401,750.721,925.972,118.782,330.88
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 8219266821,0771,143.651,258.141,384.091,522.641,675.071,842.76

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 11,48611,79713,02215,22816,752.4318,429.4820,274.4022,304.0224,536.8126,993.13
Operating Cash Flow 1,0421,1239371,3331,446.591,591.401,750.721,925.972,118.782,330.88
Capital Expenditure -221-197-255-256-302.94-333.27-366.63-403.33-443.71-488.13
Free Cash Flow 8219266821,0771,143.651,258.141,384.091,522.641,675.071,842.76
WACC
PV LFCF 1,143.651,154.571,165.601,176.731,187.971,199.32
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