Discounted Cash Flow (DCF) Analysis Levered
Martin Marietta Materials, Inc. (MLM)
$423.34
+5.24 (+1.25%)
All numbers are in Millions, Currency in USD
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 | 4,244.27 | 4,739.10 | 4,729.90 | 5,414 | 6,160.70 | 6,772.46 | 7,444.97 | 8,184.25 | 8,996.95 | 9,890.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 705.15 | 966.10 | 1,050.10 | 1,137.70 | 991.20 | 1,304.43 | 1,433.96 | 1,576.36 | 1,732.89 | 1,904.97 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -375.95 | -393.50 | -359.70 | -423.10 | -481.80 | -547.23 | -601.58 | -661.31 | -726.98 | -799.17 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 329.19 | 572.60 | 690.40 | 714.60 | 509.40 | 757.20 | 832.39 | 915.05 | 1,005.91 | 1,105.80 |
Weighted Average Cost Of Capital
| Share price | $ 423.34 |
|---|---|
| Beta | 0.864 |
| Diluted Shares Outstanding | 62.50 |
| Cost of Debt | |
| Tax Rate | 20.56 |
| After-tax Cost of Debt | 2.47% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.861 |
| Total Debt | 5,428 |
| Total Equity | 26,458.75 |
| Total Capital | 31,886.75 |
| Debt Weighting | 17.02 |
| Equity Weighting | 82.98 |
| 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 | 4,244.27 | 4,739.10 | 4,729.90 | 5,414 | 6,160.70 | 6,772.46 | 7,444.97 | 8,184.25 | 8,996.95 | 9,890.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 705.15 | 966.10 | 1,050.10 | 1,137.70 | 991.20 | 1,304.43 | 1,433.96 | 1,576.36 | 1,732.89 | 1,904.97 |
| Capital Expenditure | -375.95 | -393.50 | -359.70 | -423.10 | -481.80 | -547.23 | -601.58 | -661.31 | -726.98 | -799.17 |
| Free Cash Flow | 329.19 | 572.60 | 690.40 | 714.60 | 509.40 | 757.20 | 832.39 | 915.05 | 1,005.91 | 1,105.80 |
| WACC | ||||||||||
| PV LFCF | 506.25 | 520.41 | 534.96 | 549.92 | 565.29 | |||||
| SUM PV LFCF | 3,743.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.94 |
| Free cash flow (t + 1) | 1,127.91 |
| Terminal Value | 22,832.25 |
| Present Value of Terminal Value | 16,324.80 |
Intrinsic Value
| Enterprise Value | 20,068.68 |
|---|---|
| Net Debt | 5,070 |
| Equity Value | 14,998.68 |
| Shares Outstanding | 62.50 |
| Equity Value Per Share | 239.98 |