Discounted Cash Flow (DCF) Analysis Levered

Methode Electronics, Inc. (MEI)

$45.62

+0.28 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 50.60 | 45.62 | 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	908.30	1,000.30	1,023.90	1,088	1,163.60	1,238.35	1,317.91	1,402.57	1,492.68	1,588.57
Revenue (%)
Operating Cash Flow	117.80	102	140.60	179.80	98.80	153.34	163.20	173.68	184.84	196.71
Operating Cash Flow (%)
Capital Expenditure	-48.40	-49.80	-45.10	-24.90	-38	-50.19	-53.42	-56.85	-60.50	-64.39
Capital Expenditure (%)
Free Cash Flow	69.40	52.20	95.50	154.90	60.80	103.15	109.78	116.83	124.34	132.32

Weighted Average Cost Of Capital

Share price	$ 45.62
Beta	1.117
Diluted Shares Outstanding	37.85
Cost of Debt
Tax Rate	13.76
After-tax Cost of Debt	1.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.964
Total Debt	231.30
Total Equity	1,726.80
Total Capital	1,958.10
Debt Weighting	11.81
Equity Weighting	88.19
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	908.30	1,000.30	1,023.90	1,088	1,163.60	1,238.35	1,317.91	1,402.57	1,492.68	1,588.57
Operating Cash Flow	117.80	102	140.60	179.80	98.80	153.34	163.20	173.68	184.84	196.71
Capital Expenditure	-48.40	-49.80	-45.10	-24.90	-38	-50.19	-53.42	-56.85	-60.50	-64.39
Free Cash Flow	69.40	52.20	95.50	154.90	60.80	103.15	109.78	116.83	124.34	132.32
WACC
PV LFCF						95.46	94.01	92.59	91.19	89.81
SUM PV LFCF										463.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.06
Free cash flow (t + 1)	134.97
Terminal Value	2,227.22
Present Value of Terminal Value	1,511.61

Intrinsic Value

Enterprise Value	1,974.66
Net Debt	59.30
Equity Value	1,915.36
Shares Outstanding	37.85
Equity Value Per Share	50.60