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	2,733.90	2,828	2,310	2,788	4,553	5,339.81	6,262.60	7,344.85	8,614.13	10,102.75
Revenue (%)
Operating Cash Flow	473.70	510.50	159	659	1,484	1,051.86	1,233.64	1,446.83	1,696.85	1,990.09
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	325.10	296.30	-4	582	1,230	748.49	877.84	1,029.54	1,207.46	1,416.12

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	2,733.90	2,828	2,310	2,788	4,553	5,339.81	6,262.60	7,344.85	8,614.13	10,102.75
Operating Cash Flow	473.70	510.50	159	659	1,484	1,051.86	1,233.64	1,446.83	1,696.85	1,990.09
Capital Expenditure	-148.60	-214.20	-163	-77	-254	-303.37	-355.80	-417.28	-489.40	-573.97
Free Cash Flow	325.10	296.30	-4	582	1,230	748.49	877.84	1,029.54	1,207.46	1,416.12
WACC
PV LFCF						682.25	729.33	779.66	833.47	890.98
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