Discounted Cash Flow (DCF) Analysis Levered
LKQ Corporation (LKQ)
$54.48
+0.47 (+0.87%)
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 | 11,876.67 | 12,506.11 | 11,628.83 | 13,088.50 | 12,794 | 13,068.66 | 13,349.21 | 13,635.79 | 13,928.51 | 14,227.53 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 710.74 | 1,064.03 | 1,443.87 | 1,367.05 | 1,250 | 1,231.68 | 1,258.13 | 1,285.13 | 1,312.72 | 1,340.90 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -250.03 | -265.73 | -172.69 | -293.47 | -222 | -253.33 | -258.77 | -264.33 | -270 | -275.80 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 460.71 | 798.30 | 1,271.17 | 1,073.58 | 1,028 | 978.35 | 999.35 | 1,020.81 | 1,042.72 | 1,065.11 |
Weighted Average Cost Of Capital
| Share price | $ 54.48 |
|---|---|
| Beta | 1.350 |
| Diluted Shares Outstanding | 278 |
| Cost of Debt | |
| Tax Rate | 24.31 |
| After-tax Cost of Debt | 1.50% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.158 |
| Total Debt | 3,935 |
| Total Equity | 15,145.44 |
| Total Capital | 19,080.44 |
| Debt Weighting | 20.62 |
| Equity Weighting | 79.38 |
| 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 | 11,876.67 | 12,506.11 | 11,628.83 | 13,088.50 | 12,794 | 13,068.66 | 13,349.21 | 13,635.79 | 13,928.51 | 14,227.53 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 710.74 | 1,064.03 | 1,443.87 | 1,367.05 | 1,250 | 1,231.68 | 1,258.13 | 1,285.13 | 1,312.72 | 1,340.90 |
| Capital Expenditure | -250.03 | -265.73 | -172.69 | -293.47 | -222 | -253.33 | -258.77 | -264.33 | -270 | -275.80 |
| Free Cash Flow | 460.71 | 798.30 | 1,271.17 | 1,073.58 | 1,028 | 978.35 | 999.35 | 1,020.81 | 1,042.72 | 1,065.11 |
| WACC | ||||||||||
| PV LFCF | 604 | 569.32 | 536.63 | 505.81 | 476.76 | |||||
| SUM PV LFCF | 4,024.43 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.37 |
| Free cash flow (t + 1) | 1,086.41 |
| Terminal Value | 17,055.07 |
| Present Value of Terminal Value | 11,410.59 |
Intrinsic Value
| Enterprise Value | 15,435.02 |
|---|---|
| Net Debt | 3,657 |
| Equity Value | 11,778.02 |
| Shares Outstanding | 278 |
| Equity Value Per Share | 42.37 |