Discounted Cash Flow (DCF) Analysis Levered

Herc Holdings Inc. (HRI)

$101.99

-3.47 (-3.29%)
All numbers are in Millions, Currency in USD
Stock DCF: -47.98 | 101.99 | 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 1,754.501,976.701,9991,781.302,0732,172.912,277.632,387.402,502.462,623.07
Revenue (%)
Operating Cash Flow 341.70559.10635.60610.90744650.75682.11714.98749.44785.56
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 -234.30-289.90-59.70225.4069666.1569.3472.6876.1879.85

Weighted Average Cost Of Capital

Share price $ 101.99
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 16.429
Total Debt 2,341
Total Equity 3,110.70
Total Capital 5,451.69
Debt Weighting 42.94
Equity Weighting 57.06
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 1,754.501,976.701,9991,781.302,0732,172.912,277.632,387.402,502.462,623.07
Operating Cash Flow 341.70559.10635.60610.90744650.75682.11714.98749.44785.56
Capital Expenditure -576-849-695.30-385.50-48-584.60-612.77-642.30-673.26-705.71
Free Cash Flow -234.30-289.90-59.70225.4069666.1569.3472.6876.1879.85
WACC
PV LFCF 59.8256.6953.7450.9348.27
SUM PV LFCF 269.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.59
Free cash flow (t + 1) 81.45
Terminal Value 948.22
Present Value of Terminal Value 573.23

Intrinsic Value

Enterprise Value 842.68
Net Debt 2,306
Equity Value -1,463.32
Shares Outstanding 30.50
Equity Value Per Share -47.98