Discounted Cash Flow (DCF) Analysis Levered

La-Z-Boy Incorporated (LZB)

$28.8

-1.00 (-3.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 113.37 | 28.8 | 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	1,583.95	1,745.40	1,703.98	1,734.24	2,356.81	2,624.87	2,923.41	3,255.91	3,626.22	4,038.65
Revenue (%)
Operating Cash Flow	115.75	150.74	164.24	309.92	79	245.72	273.66	304.79	339.46	378.06
Operating Cash Flow (%)
Capital Expenditure	-36.34	-48.43	-46.03	-37.96	-76.58	-69.34	-77.23	-86.01	-95.80	-106.69
Capital Expenditure (%)
Free Cash Flow	79.41	102.31	118.21	271.96	2.42	176.38	196.44	218.78	243.66	271.37

Weighted Average Cost Of Capital

Share price	$ 28.8
Beta	1.106
Diluted Shares Outstanding	44.29
Cost of Debt
Tax Rate	27.00
After-tax Cost of Debt	0.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.856
Total Debt	430.11
Total Equity	1,275.67
Total Capital	1,705.78
Debt Weighting	25.22
Equity Weighting	74.78
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	1,583.95	1,745.40	1,703.98	1,734.24	2,356.81	2,624.87	2,923.41	3,255.91	3,626.22	4,038.65
Operating Cash Flow	115.75	150.74	164.24	309.92	79	245.72	273.66	304.79	339.46	378.06
Capital Expenditure	-36.34	-48.43	-46.03	-37.96	-76.58	-69.34	-77.23	-86.01	-95.80	-106.69
Free Cash Flow	79.41	102.31	118.21	271.96	2.42	176.38	196.44	218.78	243.66	271.37
WACC
PV LFCF						119.79	125.09	130.61	136.39	142.41
SUM PV LFCF										903.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.66
Free cash flow (t + 1)	276.80
Terminal Value	5,939.93
Present Value of Terminal Value	4,303.02

Intrinsic Value

Enterprise Value	5,206.21
Net Debt	184.53
Equity Value	5,021.68
Shares Outstanding	44.29
Equity Value Per Share	113.37