Discounted Cash Flow (DCF) Analysis Levered

Ingles Markets, Incorporated (IMKTA)

$88.11

+0.56 (+0.64%)

All numbers are in Millions, Currency in USD

Stock DCF: 296.44 | 88.11 | undervalue

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	4,092.80	4,202.03	4,610.61	4,987.92	5,678.84	6,167.60	6,698.44	7,274.96	7,901.11	8,581.15
Revenue (%)
Operating Cash Flow	161.24	211.50	350.12	306.30	339.50	353.84	384.30	417.38	453.30	492.31
Operating Cash Flow (%)
Capital Expenditure	-150.49	-161.75	-122.77	-140.60	-119.61	-186.43	-202.48	-219.91	-238.83	-259.39
Capital Expenditure (%)
Free Cash Flow	10.75	49.75	227.35	165.70	219.89	167.41	181.82	197.47	214.47	232.92

Weighted Average Cost Of Capital

Share price	$ 88.11
Beta	0.643
Diluted Shares Outstanding	19.62
Cost of Debt
Tax Rate	24.50
After-tax Cost of Debt	2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.415
Total Debt	612.50
Total Equity	1,728.50
Total Capital	2,341
Debt Weighting	26.16
Equity Weighting	73.84
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	4,092.80	4,202.03	4,610.61	4,987.92	5,678.84	6,167.60	6,698.44	7,274.96	7,901.11	8,581.15
Operating Cash Flow	161.24	211.50	350.12	306.30	339.50	353.84	384.30	417.38	453.30	492.31
Capital Expenditure	-150.49	-161.75	-122.77	-140.60	-119.61	-186.43	-202.48	-219.91	-238.83	-259.39
Free Cash Flow	10.75	49.75	227.35	165.70	219.89	167.41	181.82	197.47	214.47	232.92
WACC
PV LFCF						158.79	163.57	168.50	173.58	178.81
SUM PV LFCF										843.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.43
Free cash flow (t + 1)	237.58
Terminal Value	6,926.61
Present Value of Terminal Value	5,317.41

Intrinsic Value

Enterprise Value	6,160.66
Net Debt	345.30
Equity Value	5,815.36
Shares Outstanding	19.62
Equity Value Per Share	296.44