Discounted Cash Flow (DCF) Analysis Levered

Louisiana-Pacific Corporation (LPX)

$55.65

-1.05 (-1.85%)

All numbers are in Millions, Currency in USD

Stock DCF: 121.80 | 55.65 | undervalue

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	2,828	2,310	2,788	4,553	3,854	4,338.93	4,884.88	5,499.53	6,191.51	6,970.56
Revenue (%)
Operating Cash Flow	510.50	159	659	1,484	1,144	961.93	1,082.97	1,219.24	1,372.65	1,545.36
Operating Cash Flow (%)
Capital Expenditure	-214.20	-163	-77	-254	-414	-292.56	-329.37	-370.81	-417.47	-470
Capital Expenditure (%)
Free Cash Flow	296.30	-4	582	1,230	730	669.37	753.60	848.42	955.18	1,075.36

Weighted Average Cost Of Capital

Share price	$ 55.65
Beta	1.719
Diluted Shares Outstanding	78
Cost of Debt
Tax Rate	5.97
After-tax Cost of Debt	2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.549
Total Debt	395
Total Equity	4,340.70
Total Capital	4,735.70
Debt Weighting	8.34
Equity Weighting	91.66
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	2,828	2,310	2,788	4,553	3,854	4,338.93	4,884.88	5,499.53	6,191.51	6,970.56
Operating Cash Flow	510.50	159	659	1,484	1,144	961.93	1,082.97	1,219.24	1,372.65	1,545.36
Capital Expenditure	-214.20	-163	-77	-254	-414	-292.56	-329.37	-370.81	-417.47	-470
Free Cash Flow	296.30	-4	582	1,230	730	669.37	753.60	848.42	955.18	1,075.36
WACC
PV LFCF						599.15	603.78	608.44	613.14	617.87
SUM PV LFCF										3,042.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.72
Free cash flow (t + 1)	1,096.87
Terminal Value	11,284.65
Present Value of Terminal Value	6,483.86

Intrinsic Value

Enterprise Value	9,526.25
Net Debt	26
Equity Value	9,500.25
Shares Outstanding	78
Equity Value Per Share	121.80