Discounted Cash Flow (DCF) Analysis Levered

Lawson Products, Inc. (LAWS)

$40.42

-0.73 (-1.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 26.93 | 40.42 | 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 305.91349.64370.78351.59417.73453.22491.72533.49578.81627.98
Revenue (%)
Operating Cash Flow 7.0720.309.2032.535.4519.1720.8022.5724.4926.57
Operating Cash Flow (%)
Capital Expenditure -1.26-2.52-2.03-1.69-8.19-3.74-4.05-4.40-4.77-5.18
Capital Expenditure (%)
Free Cash Flow 5.8117.777.1730.84-2.7415.4416.7518.1719.7221.39

Weighted Average Cost Of Capital

Share price $ 40.42
Beta 1.074
Diluted Shares Outstanding 9.35
Cost of Debt
Tax Rate 21.08
After-tax Cost of Debt 3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.356
Total Debt 27.21
Total Equity 377.93
Total Capital 405.13
Debt Weighting 6.72
Equity Weighting 93.28
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 305.91349.64370.78351.59417.73453.22491.72533.49578.81627.98
Operating Cash Flow 7.0720.309.2032.535.4519.1720.8022.5724.4926.57
Capital Expenditure -1.26-2.52-2.03-1.69-8.19-3.74-4.05-4.40-4.77-5.18
Free Cash Flow 5.8117.777.1730.84-2.7415.4416.7518.1719.7221.39
WACC
PV LFCF 9.239.199.159.129.08
SUM PV LFCF 70.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.95
Free cash flow (t + 1) 21.82
Terminal Value 313.96
Present Value of Terminal Value 204.52

Intrinsic Value

Enterprise Value 274.78
Net Debt 23.03
Equity Value 251.76
Shares Outstanding 9.35
Equity Value Per Share 26.93