Discounted Cash Flow (DCF) Analysis Levered

Kelly Services, Inc. (KELYA)

$13.72

-0.09 (-0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 22.64 | 13.72 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 5,374.405,513.905,355.604,5164,275.864,048.503,833.223,629.393,436.403,253.673,080.66
Revenue (%)
Operating Cash Flow 71.2061.40102.2018690.4985.6881.1276.8172.7368.8665.20
Operating Cash Flow (%)
Capital Expenditure -24.60-25.60-20-15.50-17.52-16.59-15.70-14.87-14.08-13.33-12.62
Capital Expenditure (%)
Free Cash Flow 46.6035.8082.20170.5072.9769.0965.4261.9458.6555.5352.58

Weighted Average Cost Of Capital

Share price $ 13.72
Beta 1.050
Diluted Shares Outstanding 39.50
Cost of Debt
Tax Rate 15.98
After-tax Cost of Debt 2.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.653
Total Debt 78.90
Total Equity 541.94
Total Capital 620.84
Debt Weighting 12.71
Equity Weighting 87.29
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 5,374.405,513.905,355.604,5164,275.864,048.503,833.223,629.393,436.403,253.673,080.66
Operating Cash Flow 71.2061.40102.2018690.4985.6881.1276.8172.7368.8665.20
Capital Expenditure -24.60-25.60-20-15.50-17.52-16.59-15.70-14.87-14.08-13.33-12.62
Free Cash Flow 46.6035.8082.20170.5072.9769.0965.4261.9458.6555.5352.58
WACC
PV LFCF 58.1150.9944.7539.2734.4730.2526.54
SUM PV LFCF 237.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.89
Free cash flow (t + 1) 53.63
Terminal Value 910.49
Present Value of Terminal Value 622.83

Intrinsic Value

Enterprise Value 860.33
Net Debt -33.80
Equity Value 894.13
Shares Outstanding 39.50
Equity Value Per Share 22.64