Discounted Cash Flow (DCF) Analysis Levered

Matthews International Corporation (MATW)

$34.73

+0.22 (+0.64%)

All numbers are in Millions, Currency in USD

Stock DCF: 66.90 | 34.73 | 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	1,602.58	1,537.28	1,498.31	1,671.03	1,762.40	1,808.16	1,855.11	1,903.28	1,952.70	2,003.40
Revenue (%)
Operating Cash Flow	147.57	131.08	180.45	162.81	126.86	168.96	173.34	177.84	182.46	187.20
Operating Cash Flow (%)
Capital Expenditure	-43.20	-37.69	-34.85	-34.31	-61.32	-47.03	-48.26	-49.51	-50.79	-52.11
Capital Expenditure (%)
Free Cash Flow	104.37	93.40	145.60	128.50	65.54	121.92	125.09	128.34	131.67	135.09

Weighted Average Cost Of Capital

Share price	$ 34.73
Beta	1.133
Diluted Shares Outstanding	31.99
Cost of Debt
Tax Rate	4.27
After-tax Cost of Debt	3.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.729
Total Debt	872.88
Total Equity	1,110.91
Total Capital	1,983.79
Debt Weighting	44.00
Equity Weighting	56.00
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	1,602.58	1,537.28	1,498.31	1,671.03	1,762.40	1,808.16	1,855.11	1,903.28	1,952.70	2,003.40
Operating Cash Flow	147.57	131.08	180.45	162.81	126.86	168.96	173.34	177.84	182.46	187.20
Capital Expenditure	-43.20	-37.69	-34.85	-34.31	-61.32	-47.03	-48.26	-49.51	-50.79	-52.11
Free Cash Flow	104.37	93.40	145.60	128.50	65.54	121.92	125.09	128.34	131.67	135.09
WACC
PV LFCF						114.77	110.85	107.05	103.39	99.86
SUM PV LFCF										535.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.23
Free cash flow (t + 1)	137.79
Terminal Value	3,257.40
Present Value of Terminal Value	2,407.88

Intrinsic Value

Enterprise Value	2,943.80
Net Debt	803.87
Equity Value	2,139.94
Shares Outstanding	31.99
Equity Value Per Share	66.90