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 908.301,000.301,023.901,0881,163.601,238.351,317.911,402.571,492.681,588.57
Revenue (%)
Operating Cash Flow 117.80102140.60179.8098.80153.34163.20173.68184.84196.71
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 69.4052.2095.50154.9060.80103.15109.78116.83124.34132.32

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 908.301,000.301,023.901,0881,163.601,238.351,317.911,402.571,492.681,588.57
Operating Cash Flow 117.80102140.60179.8098.80153.34163.20173.68184.84196.71
Capital Expenditure -48.40-49.80-45.10-24.90-38-50.19-53.42-56.85-60.50-64.39
Free Cash Flow 69.4052.2095.50154.9060.80103.15109.78116.83124.34132.32
WACC
PV LFCF 95.4694.0192.5991.1989.81
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