Discounted Cash Flow (DCF) Analysis Levered

MillerKnoll, Inc. (MLHR)

$38.66

+0.03 (+0.08%)

All numbers are in Millions, Currency in USD

Stock DCF: 40.50 | 38.66 | 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	2,278.20	2,381.20	2,567.20	2,486.60	2,465.10	2,516.42	2,568.82	2,622.30	2,676.90	2,732.63
Revenue (%)
Operating Cash Flow	202.10	166.50	216.40	221.80	332.30	235	239.89	244.88	249.98	255.19
Operating Cash Flow (%)
Capital Expenditure	-87.30	-70.60	-90.60	-69	-59.80	-78.14	-79.77	-81.43	-83.13	-84.86
Capital Expenditure (%)
Free Cash Flow	114.80	95.90	125.80	152.80	272.50	156.85	160.12	163.45	166.86	170.33

Weighted Average Cost Of Capital

Share price	$ 38.66
Beta	1.305
Diluted Shares Outstanding	58.77
Cost of Debt
Tax Rate	23.54
After-tax Cost of Debt	2.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.683
Total Debt	474
Total Equity	2,272.12
Total Capital	2,746.12
Debt Weighting	17.26
Equity Weighting	82.74
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	2,278.20	2,381.20	2,567.20	2,486.60	2,465.10	2,516.42	2,568.82	2,622.30	2,676.90	2,732.63
Operating Cash Flow	202.10	166.50	216.40	221.80	332.30	235	239.89	244.88	249.98	255.19
Capital Expenditure	-87.30	-70.60	-90.60	-69	-59.80	-78.14	-79.77	-81.43	-83.13	-84.86
Free Cash Flow	114.80	95.90	125.80	152.80	272.50	156.85	160.12	163.45	166.86	170.33
WACC
PV LFCF						133.49	125.71	118.38	111.48	104.98
SUM PV LFCF										643.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.40
Free cash flow (t + 1)	173.74
Terminal Value	2,714.64
Present Value of Terminal Value	1,813.70

Intrinsic Value

Enterprise Value	2,457.63
Net Debt	77.60
Equity Value	2,380.03
Shares Outstanding	58.77
Equity Value Per Share	40.50