Discounted Cash Flow (DCF) Analysis Levered
Herc Holdings Inc. (HRI)
$124.37
+2.34 (+1.92%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,976.70 | 1,999 | 1,781.30 | 2,073.10 | 2,738.80 | 3,003.99 | 3,294.85 | 3,613.88 | 3,963.79 | 4,347.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 559.10 | 635.60 | 610.90 | 744 | 916.70 | 983.71 | 1,078.96 | 1,183.43 | 1,298.02 | 1,423.70 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -849 | -695.30 | -385.50 | -641.80 | -1,272.20 | -1,062.11 | -1,164.95 | -1,277.75 | -1,401.47 | -1,537.17 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -289.90 | -59.70 | 225.40 | 102.20 | -355.50 | -78.40 | -85.99 | -94.31 | -103.45 | -113.46 |
Weighted Average Cost Of Capital
| Share price | $ 124.37 |
|---|---|
| Beta | 2.416 |
| Diluted Shares Outstanding | 30.20 |
| Cost of Debt | |
| Tax Rate | 23.88 |
| After-tax Cost of Debt | 3.24% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 15.659 |
| Total Debt | 3,615.40 |
| Total Equity | 3,755.97 |
| Total Capital | 7,371.37 |
| Debt Weighting | 49.05 |
| Equity Weighting | 50.95 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,976.70 | 1,999 | 1,781.30 | 2,073.10 | 2,738.80 | 3,003.99 | 3,294.85 | 3,613.88 | 3,963.79 | 4,347.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 559.10 | 635.60 | 610.90 | 744 | 916.70 | 983.71 | 1,078.96 | 1,183.43 | 1,298.02 | 1,423.70 |
| Capital Expenditure | -849 | -695.30 | -385.50 | -641.80 | -1,272.20 | -1,062.11 | -1,164.95 | -1,277.75 | -1,401.47 | -1,537.17 |
| Free Cash Flow | -289.90 | -59.70 | 225.40 | 102.20 | -355.50 | -78.40 | -85.99 | -94.31 | -103.45 | -113.46 |
| WACC | ||||||||||
| PV LFCF | -71.55 | -71.62 | -71.70 | -71.77 | -71.85 | |||||
| SUM PV LFCF | -358.49 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.57 |
| Free cash flow (t + 1) | -115.73 |
| Terminal Value | -1,528.83 |
| Present Value of Terminal Value | -968.06 |
Intrinsic Value
| Enterprise Value | -1,326.55 |
|---|---|
| Net Debt | 3,561.90 |
| Equity Value | -4,888.45 |
| Shares Outstanding | 30.20 |
| Equity Value Per Share | -161.87 |