Discounted Cash Flow (DCF) Analysis Levered

LKQ Corporation (LKQ)

$50.55

+0.95 (+1.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.64 | 50.55 | 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 9,736.9111,876.6712,506.1111,628.8313,088.5014,162.1915,323.9416,58117,941.1819,412.94
Revenue (%)
Operating Cash Flow 518.90710.741,064.031,443.871,367.051,208.961,308.131,415.441,531.551,657.19
Operating Cash Flow (%)
Capital Expenditure -179.09-250.03-265.73-172.69-293.47-277.48-300.24-324.87-351.52-380.36
Capital Expenditure (%)
Free Cash Flow 339.81460.71798.301,271.171,073.58931.481,007.891,090.571,180.031,276.83

Weighted Average Cost Of Capital

Share price $ 50.55
Beta 1.639
Diluted Shares Outstanding 305.01
Cost of Debt
Tax Rate 22.03
After-tax Cost of Debt 1.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.477
Total Debt 4,224.24
Total Equity 15,418.05
Total Capital 19,642.29
Debt Weighting 21.51
Equity Weighting 78.49
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 9,736.9111,876.6712,506.1111,628.8313,088.5014,162.1915,323.9416,58117,941.1819,412.94
Operating Cash Flow 518.90710.741,064.031,443.871,367.051,208.961,308.131,415.441,531.551,657.19
Capital Expenditure -179.09-250.03-265.73-172.69-293.47-277.48-300.24-324.87-351.52-380.36
Free Cash Flow 339.81460.71798.301,271.171,073.58931.481,007.891,090.571,180.031,276.83
WACC
PV LFCF 858.43856853.58851.17848.76
SUM PV LFCF 4,267.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.51
Free cash flow (t + 1) 1,302.37
Terminal Value 20,005.64
Present Value of Terminal Value 13,298.53

Intrinsic Value

Enterprise Value 17,566.46
Net Debt 3,950.10
Equity Value 13,616.35
Shares Outstanding 305.01
Equity Value Per Share 44.64