Discounted Cash Flow (DCF) Analysis Levered
KAR Auction Services, Inc. (KAR)
$16.25
+0.59 (+3.77%)
All numbers are in Millions, Currency in USD
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 | 3,458 | 3,769.60 | 2,781.90 | 2,187.70 | 2,251.60 | 2,051.04 | 1,868.35 | 1,701.93 | 1,550.33 | 1,412.24 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 588.80 | 749.80 | 542 | 384.40 | 413.20 | 378.72 | 344.98 | 314.26 | 286.26 | 260.77 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -152.20 | -198 | -161.60 | -101.40 | -108.50 | -102.21 | -93.11 | -84.81 | -77.26 | -70.38 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 436.60 | 551.80 | 380.40 | 283 | 304.70 | 276.51 | 251.88 | 229.44 | 209.01 | 190.39 |
Weighted Average Cost Of Capital
Share price | $ 16.25 |
---|---|
Beta | 1.051 |
Diluted Shares Outstanding | 121.16 |
Cost of Debt | |
Tax Rate | 34.48 |
After-tax Cost of Debt | 3.80% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.705 |
Total Debt | 2,183.10 |
Total Equity | 1,968.90 |
Total Capital | 4,152 |
Debt Weighting | 52.58 |
Equity Weighting | 47.42 |
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 | 3,458 | 3,769.60 | 2,781.90 | 2,187.70 | 2,251.60 | 2,051.04 | 1,868.35 | 1,701.93 | 1,550.33 | 1,412.24 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 588.80 | 749.80 | 542 | 384.40 | 413.20 | 378.72 | 344.98 | 314.26 | 286.26 | 260.77 |
Capital Expenditure | -152.20 | -198 | -161.60 | -101.40 | -108.50 | -102.21 | -93.11 | -84.81 | -77.26 | -70.38 |
Free Cash Flow | 436.60 | 551.80 | 380.40 | 283 | 304.70 | 276.51 | 251.88 | 229.44 | 209.01 | 190.39 |
WACC | ||||||||||
PV LFCF | 261.72 | 225.66 | 194.57 | 167.76 | 144.64 | |||||
SUM PV LFCF | 994.34 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.65 |
Free cash flow (t + 1) | 194.20 |
Terminal Value | 5,320.45 |
Present Value of Terminal Value | 4,042.04 |
Intrinsic Value
Enterprise Value | 5,036.38 |
---|---|
Net Debt | 1,993.10 |
Equity Value | 3,043.28 |
Shares Outstanding | 121.16 |
Equity Value Per Share | 25.12 |