Discounted Cash Flow (DCF) Analysis Levered

Herc Holdings Inc. (HRI)

$115.57

+6.79 (+6.24%)

All numbers are in Millions, Currency in USD

Stock DCF: -49.14 | 115.57 | 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	1,754.50	1,976.70	1,999	1,781.30	2,073	2,172.91	2,277.63	2,387.40	2,502.46	2,623.07
Revenue (%)
Operating Cash Flow	341.70	559.10	635.60	610.90	744	650.75	682.11	714.98	749.44	785.56
Operating Cash Flow (%)
Capital Expenditure	-576	-849	-695.30	-385.50	-48	-584.60	-612.77	-642.30	-673.26	-705.71
Capital Expenditure (%)
Free Cash Flow	-234.30	-289.90	-59.70	225.40	696	66.15	69.34	72.68	76.18	79.85

Weighted Average Cost Of Capital

Share price	$ 115.57
Beta	2.698
Diluted Shares Outstanding	30.50
Cost of Debt
Tax Rate	22.76
After-tax Cost of Debt	2.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity	16.353
Total Debt	2,341
Total Equity	3,524.89
Total Capital	5,865.89
Debt Weighting	39.91
Equity Weighting	60.09
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	1,754.50	1,976.70	1,999	1,781.30	2,073	2,172.91	2,277.63	2,387.40	2,502.46	2,623.07
Operating Cash Flow	341.70	559.10	635.60	610.90	744	650.75	682.11	714.98	749.44	785.56
Capital Expenditure	-576	-849	-695.30	-385.50	-48	-584.60	-612.77	-642.30	-673.26	-705.71
Free Cash Flow	-234.30	-289.90	-59.70	225.40	696	66.15	69.34	72.68	76.18	79.85
WACC
PV LFCF						59.62	56.32	53.20	50.26	47.48
SUM PV LFCF										266.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.96
Free cash flow (t + 1)	81.45
Terminal Value	909.06
Present Value of Terminal Value	540.46

Intrinsic Value

Enterprise Value	807.32
Net Debt	2,306
Equity Value	-1,498.68
Shares Outstanding	30.50
Equity Value Per Share	-49.14