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 2,8282,3102,7884,5533,8544,338.934,884.885,499.536,191.516,970.56
Revenue (%)
Operating Cash Flow 510.501596591,4841,144961.931,082.971,219.241,372.651,545.36
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 296.30-45821,230730669.37753.60848.42955.181,075.36

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 2,8282,3102,7884,5533,8544,338.934,884.885,499.536,191.516,970.56
Operating Cash Flow 510.501596591,4841,144961.931,082.971,219.241,372.651,545.36
Capital Expenditure -214.20-163-77-254-414-292.56-329.37-370.81-417.47-470
Free Cash Flow 296.30-45821,230730669.37753.60848.42955.181,075.36
WACC
PV LFCF 599.15603.78608.44613.14617.87
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