Discounted Cash Flow (DCF) Analysis Levered

LKQ Corporation (LKQ)

$54.48

+0.47 (+0.87%)
All numbers are in Millions, Currency in USD
Stock DCF: 42.37 | 54.48 | overvalue

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 11,876.6712,506.1111,628.8313,088.5012,79413,068.6613,349.2113,635.7913,928.5114,227.53
Revenue (%)
Operating Cash Flow 710.741,064.031,443.871,367.051,2501,231.681,258.131,285.131,312.721,340.90
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 460.71798.301,271.171,073.581,028978.35999.351,020.811,042.721,065.11

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 11,876.6712,506.1111,628.8313,088.5012,79413,068.6613,349.2113,635.7913,928.5114,227.53
Operating Cash Flow 710.741,064.031,443.871,367.051,2501,231.681,258.131,285.131,312.721,340.90
Capital Expenditure -250.03-265.73-172.69-293.47-222-253.33-258.77-264.33-270-275.80
Free Cash Flow 460.71798.301,271.171,073.581,028978.35999.351,020.811,042.721,065.11
WACC
PV LFCF 604569.32536.63505.81476.76
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