Discounted Cash Flow (DCF) Analysis Levered

El Pollo Loco Holdings, Inc. (LOCO)

$9.09

+0.01 (+0.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 5.70 | 9.09 | 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 435.83442.33426.09454.36469.96479.23488.68498.32508.14518.16
Revenue (%)
Operating Cash Flow 45.4436.1340.5552.1038.5545.8046.7047.6248.5649.52
Operating Cash Flow (%)
Capital Expenditure -27.80-15.44-6.69-17.04-19.92-18.62-18.99-19.36-19.74-20.13
Capital Expenditure (%)
Free Cash Flow 17.6420.7033.8635.0618.6327.1727.7128.2628.8129.38

Weighted Average Cost Of Capital

Share price $ 9.09
Beta 1.339
Diluted Shares Outstanding 36.58
Cost of Debt
Tax Rate 27.97
After-tax Cost of Debt 3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.624
Total Debt 252.88
Total Equity 332.47
Total Capital 585.35
Debt Weighting 43.20
Equity Weighting 56.80
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 435.83442.33426.09454.36469.96479.23488.68498.32508.14518.16
Operating Cash Flow 45.4436.1340.5552.1038.5545.8046.7047.6248.5649.52
Capital Expenditure -27.80-15.44-6.69-17.04-19.92-18.62-18.99-19.36-19.74-20.13
Free Cash Flow 17.6420.7033.8635.0618.6327.1727.7128.2628.8129.38
WACC
PV LFCF 23.5722.3921.2620.1919.18
SUM PV LFCF 114.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.37
Free cash flow (t + 1) 29.68
Terminal Value 465.88
Present Value of Terminal Value 326.48

Intrinsic Value

Enterprise Value 440.93
Net Debt 232.39
Equity Value 208.54
Shares Outstanding 36.58
Equity Value Per Share 5.70