Discounted Cash Flow (DCF) Analysis Levered

Meredith Corporation (MDP)

$59.07

+0.07 (+0.12%)

All numbers are in Millions, Currency in USD

Stock DCF: 252.73 | 59.07 | 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	1,713.36	2,247.40	3,188.50	2,848.60	2,977.40	3,475.41	4,056.72	4,735.26	5,527.30	6,451.82
Revenue (%)
Operating Cash Flow	219.35	151.40	245.30	306.60	398.60	357.15	416.89	486.62	568.02	663.02
Operating Cash Flow (%)
Capital Expenditure	-34.78	-53.20	-46.40	-55.40	-35.20	-62.42	-72.86	-85.04	-99.27	-115.87
Capital Expenditure (%)
Free Cash Flow	184.56	98.20	198.90	251.20	363.40	294.74	344.03	401.58	468.75	547.15

Weighted Average Cost Of Capital

Share price	$ 59.07
Beta	0.000
Diluted Shares Outstanding	91.40
Cost of Debt
Tax Rate	22.10
After-tax Cost of Debt	4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	3.637
Total Debt	3,214.30
Total Equity	5,399
Total Capital	8,613.30
Debt Weighting	37.32
Equity Weighting	62.68
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	1,713.36	2,247.40	3,188.50	2,848.60	2,977.40	3,475.41	4,056.72	4,735.26	5,527.30	6,451.82
Operating Cash Flow	219.35	151.40	245.30	306.60	398.60	357.15	416.89	486.62	568.02	663.02
Capital Expenditure	-34.78	-53.20	-46.40	-55.40	-35.20	-62.42	-72.86	-85.04	-99.27	-115.87
Free Cash Flow	184.56	98.20	198.90	251.20	363.40	294.74	344.03	401.58	468.75	547.15
WACC
PV LFCF						283.67	318.69	358.03	402.23	451.89
SUM PV LFCF										1,814.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.90
Free cash flow (t + 1)	558.10
Terminal Value	29,373.50
Present Value of Terminal Value	24,259.29

Intrinsic Value

Enterprise Value	26,073.81
Net Debt	2,974.10
Equity Value	23,099.71
Shares Outstanding	91.40
Equity Value Per Share	252.73