Discounted Cash Flow (DCF) Analysis Levered

HEICO Corporation (HEI)

$194.61

+2.04 (+1.06%)
All numbers are in Millions, Currency in USD
Stock DCF: 93.42 | 194.61 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,055.651,787.011,865.682,208.322,968.103,295.383,658.734,062.154,510.065,007.35
Revenue (%)
Operating Cash Flow 437.38409.13444.08467.86448.74687.27763.06847.19940.611,044.32
Operating Cash Flow (%)
Capital Expenditure -28.94-22.94-36.18-31.98-49.43-51.04-56.67-62.92-69.86-77.56
Capital Expenditure (%)
Free Cash Flow 408.44386.19407.90435.87399.30636.23706.38784.27870.75966.76

Weighted Average Cost Of Capital

Share price $ 194.61
Beta 1.170
Diluted Shares Outstanding 138.91
Cost of Debt
Tax Rate 27.32
After-tax Cost of Debt 3.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.825
Total Debt 2,478.08
Total Equity 27,032.30
Total Capital 29,510.38
Debt Weighting 8.40
Equity Weighting 91.60
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,055.651,787.011,865.682,208.322,968.103,295.383,658.734,062.154,510.065,007.35
Operating Cash Flow 437.38409.13444.08467.86448.74687.27763.06847.19940.611,044.32
Capital Expenditure -28.94-22.94-36.18-31.98-49.43-51.04-56.67-62.92-69.86-77.56
Free Cash Flow 408.44386.19407.90435.87399.30636.23706.38784.27870.75966.76
WACC
PV LFCF 582.31591.72601.29611.01620.89
SUM PV LFCF 3,007.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.26
Free cash flow (t + 1) 1,005.43
Terminal Value 19,114.64
Present Value of Terminal Value 12,276.09

Intrinsic Value

Enterprise Value 15,283.31
Net Debt 2,307.03
Equity Value 12,976.28
Shares Outstanding 138.91
Equity Value Per Share 93.42