Discounted Cash Flow (DCF) Analysis Levered
Martin Marietta Materials, Inc. (MLM)
$349.45
+15.40 (+4.61%)
All numbers are in Millions, Currency in USD
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 | 3,965.59 | 4,244.27 | 4,739.10 | 4,729.90 | 5,414 | 5,860.05 | 6,342.85 | 6,865.43 | 7,431.06 | 8,043.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 657.88 | 705.15 | 966.10 | 1,050.10 | 1,137.70 | 1,134.56 | 1,228.04 | 1,329.21 | 1,438.72 | 1,557.26 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -410.33 | -375.95 | -393.50 | -359.70 | -423.10 | -503.12 | -544.57 | -589.44 | -638 | -690.57 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 247.55 | 329.19 | 572.60 | 690.40 | 714.60 | 631.44 | 683.46 | 739.77 | 800.72 | 866.69 |
Weighted Average Cost Of Capital
| Share price | $ 349.45 |
|---|---|
| Beta | 0.785 |
| Diluted Shares Outstanding | 62.40 |
| Cost of Debt | |
| Tax Rate | 17.88 |
| After-tax Cost of Debt | 2.12% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.449 |
| Total Debt | 5,534.10 |
| Total Equity | 21,805.68 |
| Total Capital | 27,339.78 |
| Debt Weighting | 20.24 |
| Equity Weighting | 79.76 |
| 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 | 3,965.59 | 4,244.27 | 4,739.10 | 4,729.90 | 5,414 | 5,860.05 | 6,342.85 | 6,865.43 | 7,431.06 | 8,043.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 657.88 | 705.15 | 966.10 | 1,050.10 | 1,137.70 | 1,134.56 | 1,228.04 | 1,329.21 | 1,438.72 | 1,557.26 |
| Capital Expenditure | -410.33 | -375.95 | -393.50 | -359.70 | -423.10 | -503.12 | -544.57 | -589.44 | -638 | -690.57 |
| Free Cash Flow | 247.55 | 329.19 | 572.60 | 690.40 | 714.60 | 631.44 | 683.46 | 739.77 | 800.72 | 866.69 |
| WACC | ||||||||||
| PV LFCF | 598.13 | 613.25 | 628.75 | 644.64 | 660.94 | |||||
| SUM PV LFCF | 3,145.71 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.57 |
| Free cash flow (t + 1) | 884.03 |
| Terminal Value | 24,762.67 |
| Present Value of Terminal Value | 18,884.04 |
Intrinsic Value
| Enterprise Value | 22,029.75 |
|---|---|
| Net Debt | 5,275.70 |
| Equity Value | 16,754.05 |
| Shares Outstanding | 62.40 |
| Equity Value Per Share | 268.49 |