Discounted Cash Flow (DCF) Analysis Levered

Louisiana-Pacific Corporation (LPX)

$65.39

-0.28 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 139.86 | 65.39 | 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 2,733.902,8282,3102,7884,5535,339.816,262.607,344.858,614.1310,102.75
Revenue (%)
Operating Cash Flow 473.70510.501596591,4841,051.861,233.641,446.831,696.851,990.09
Operating Cash Flow (%)
Capital Expenditure -148.60-214.20-163-77-254-303.37-355.80-417.28-489.40-573.97
Capital Expenditure (%)
Free Cash Flow 325.10296.30-45821,230748.49877.841,029.541,207.461,416.12

Weighted Average Cost Of Capital

Share price $ 65.39
Beta 1.539
Diluted Shares Outstanding 112
Cost of Debt
Tax Rate 23.29
After-tax Cost of Debt 2.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.109
Total Debt 397
Total Equity 7,323.68
Total Capital 7,720.68
Debt Weighting 5.14
Equity Weighting 94.86
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 2,733.902,8282,3102,7884,5535,339.816,262.607,344.858,614.1310,102.75
Operating Cash Flow 473.70510.501596591,4841,051.861,233.641,446.831,696.851,990.09
Capital Expenditure -148.60-214.20-163-77-254-303.37-355.80-417.28-489.40-573.97
Free Cash Flow 325.10296.30-45821,230748.49877.841,029.541,207.461,416.12
WACC
PV LFCF 682.25729.33779.66833.47890.98
SUM PV LFCF 3,915.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.71
Free cash flow (t + 1) 1,444.44
Terminal Value 18,734.70
Present Value of Terminal Value 11,787.33

Intrinsic Value

Enterprise Value 15,703.02
Net Debt 39
Equity Value 15,664.02
Shares Outstanding 112
Equity Value Per Share 139.86