Discounted Cash Flow (DCF) Analysis Levered

Kraton Corporation (KRA)

$46.49

+0.01 (+-%)

All numbers are in Millions, Currency in USD

Stock DCF: 18.69 | 46.49 | 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	1,960.36	2,011.68	1,804.44	1,563.15	1,970.13	1,994.66	2,019.49	2,044.63	2,070.08	2,095.85
Revenue (%)
Operating Cash Flow	255.44	246.58	234.94	151.33	171.22	226.11	228.93	231.78	234.66	237.59
Operating Cash Flow (%)
Capital Expenditure	-122.59	-111.10	-112.67	-85.97	-101.21	-114.32	-115.75	-117.19	-118.65	-120.12
Capital Expenditure (%)
Free Cash Flow	132.85	135.48	122.27	65.36	70.01	111.79	113.18	114.59	116.02	117.46

Weighted Average Cost Of Capital

Share price	$ 46.49
Beta	2.089
Diluted Shares Outstanding	32.64
Cost of Debt
Tax Rate	20.86
After-tax Cost of Debt	3.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.393
Total Debt	986.01
Total Equity	1,517.53
Total Capital	2,503.53
Debt Weighting	39.38
Equity Weighting	60.62
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	1,960.36	2,011.68	1,804.44	1,563.15	1,970.13	1,994.66	2,019.49	2,044.63	2,070.08	2,095.85
Operating Cash Flow	255.44	246.58	234.94	151.33	171.22	226.11	228.93	231.78	234.66	237.59
Capital Expenditure	-122.59	-111.10	-112.67	-85.97	-101.21	-114.32	-115.75	-117.19	-118.65	-120.12
Free Cash Flow	132.85	135.48	122.27	65.36	70.01	111.79	113.18	114.59	116.02	117.46
WACC
PV LFCF						102.15	94.50	87.42	80.88	74.82
SUM PV LFCF										439.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.44
Free cash flow (t + 1)	119.81
Terminal Value	1,610.38
Present Value of Terminal Value	1,025.76

Intrinsic Value

Enterprise Value	1,465.53
Net Debt	855.49
Equity Value	610.04
Shares Outstanding	32.64
Equity Value Per Share	18.69