Discounted Cash Flow (DCF) Analysis Levered
Lamar Advertising Company (LAMR)
$94.62
+2.63 (+2.86%)
All numbers are in Millions, Currency in USD
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 | 1,627.22 | 1,753.64 | 1,568.86 | 1,787.40 | 2,032.14 | 2,158.41 | 2,292.52 | 2,434.97 | 2,586.27 | 2,746.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 564.85 | 630.86 | 569.87 | 734.42 | 781.61 | 805.35 | 855.40 | 908.55 | 965 | 1,024.96 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -117.64 | -140.96 | -62.27 | -126.09 | -167.08 | -148.98 | -158.24 | -168.07 | -178.52 | -189.61 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 447.21 | 489.91 | 507.60 | 608.33 | 614.53 | 656.37 | 697.15 | 740.47 | 786.48 | 835.35 |
Weighted Average Cost Of Capital
| Share price | $ 94.62 |
|---|---|
| Beta | 1.420 |
| Diluted Shares Outstanding | 101.63 |
| Cost of Debt | |
| Tax Rate | 3.83 |
| After-tax Cost of Debt | 2.68% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.203 |
| Total Debt | 4,571.57 |
| Total Equity | 9,616.66 |
| Total Capital | 14,188.23 |
| Debt Weighting | 32.22 |
| Equity Weighting | 67.78 |
| 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 | 1,627.22 | 1,753.64 | 1,568.86 | 1,787.40 | 2,032.14 | 2,158.41 | 2,292.52 | 2,434.97 | 2,586.27 | 2,746.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 564.85 | 630.86 | 569.87 | 734.42 | 781.61 | 805.35 | 855.40 | 908.55 | 965 | 1,024.96 |
| Capital Expenditure | -117.64 | -140.96 | -62.27 | -126.09 | -167.08 | -148.98 | -158.24 | -168.07 | -178.52 | -189.61 |
| Free Cash Flow | 447.21 | 489.91 | 507.60 | 608.33 | 614.53 | 656.37 | 697.15 | 740.47 | 786.48 | 835.35 |
| WACC | ||||||||||
| PV LFCF | 608.99 | 600.14 | 591.42 | 582.82 | 574.35 | |||||
| SUM PV LFCF | 2,957.72 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.78 |
| Free cash flow (t + 1) | 852.06 |
| Terminal Value | 14,741.49 |
| Present Value of Terminal Value | 10,135.62 |
Intrinsic Value
| Enterprise Value | 13,093.35 |
|---|---|
| Net Debt | 4,518.95 |
| Equity Value | 8,574.39 |
| Shares Outstanding | 101.63 |
| Equity Value Per Share | 84.36 |