Discounted Cash Flow (DCF) Analysis Levered

El Pollo Loco Holdings, Inc. (LOCO)

$8.95

+0.24 (+2.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.67 | 8.95 | undervalue

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 401.70435.83442.33426.09454.36469.07484.26499.94516.13532.84
Revenue (%)
Operating Cash Flow 53.6745.4436.1340.5547.1148.6350.2151.8453.5155.25
Operating Cash Flow (%)
Capital Expenditure -36.24-27.80-15.44-6.69-23.24-23.99-24.77-25.57-26.40-27.26
Capital Expenditure (%)
Free Cash Flow 17.4317.6420.7033.8623.8724.6425.4426.2627.1127.99

Weighted Average Cost Of Capital

Share price $ 8.95
Beta 1.264
Diluted Shares Outstanding 36.53
Cost of Debt
Tax Rate 26.19
After-tax Cost of Debt 3.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.938
Total Debt -
Total Equity 326.90
Total Capital 326.90
Debt Weighting 0.00
Equity Weighting 100.00
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 401.70435.83442.33426.09454.36469.07484.26499.94516.13532.84
Operating Cash Flow 53.6745.4436.1340.5547.1148.6350.2151.8453.5155.25
Capital Expenditure -36.24-27.80-15.44-6.69-23.24-23.99-24.77-25.57-26.40-27.26
Free Cash Flow 17.4317.6420.7033.8623.8724.6425.4426.2627.1127.99
WACC
PV LFCF 18.5417.4116.3515.3514.42
SUM PV LFCF 99.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.94
Free cash flow (t + 1) 28.55
Terminal Value 359.57
Present Value of Terminal Value 223.88

Intrinsic Value

Enterprise Value 323.09
Net Debt -30.05
Equity Value 353.13
Shares Outstanding 36.53
Equity Value Per Share 9.67