Discounted Cash Flow (DCF) Analysis Levered

Kronos Worldwide, Inc. (KRO)

$8.655

+0.02 (+0.29%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.84 | 8.655 | undervalue

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 1,7291,661.901,731.101,638.801,9392,003.322,069.782,138.442,209.382,282.68
Revenue (%)
Operating Cash Flow 276.10188.50160.30102.50207.60214.48221.60228.95236.55244.39
Operating Cash Flow (%)
Capital Expenditure -64.30-56.30-55.10-62.80-68.45-70.73-73.07-75.50-78-80.59
Capital Expenditure (%)
Free Cash Flow 211.80132.20105.2039.70139.14143.76148.53153.46158.55163.81

Weighted Average Cost Of Capital

Share price $ 8.655
Beta 1.054
Diluted Shares Outstanding 115.60
Cost of Debt
Tax Rate 26.80
After-tax Cost of Debt -2.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.840
Total Debt 465
Total Equity 1,000.52
Total Capital 1,465.52
Debt Weighting 31.73
Equity Weighting 68.27
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 1,7291,661.901,731.101,638.801,9392,003.322,069.782,138.442,209.382,282.68
Operating Cash Flow 276.10188.50160.30102.50207.60214.48221.60228.95236.55244.39
Capital Expenditure -64.30-56.30-55.10-62.80-68.45-70.73-73.07-75.50-78-80.59
Free Cash Flow 211.80132.20105.2039.70139.14143.76148.53153.46158.55163.81
WACC
PV LFCF 136.81134.51132.26130.04127.86
SUM PV LFCF 661.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.08
Free cash flow (t + 1) 167.08
Terminal Value 5,424.74
Present Value of Terminal Value 4,234.27

Intrinsic Value

Enterprise Value 4,895.75
Net Debt 59
Equity Value 4,836.75
Shares Outstanding 115.60
Equity Value Per Share 41.84