Discounted Cash Flow (DCF) Analysis Levered

Martin Marietta Materials, Inc. (MLM)

$415.08

+10.68 (+2.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 246.10 | 415.08 | overvalue

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 4,244.274,739.104,729.905,4146,160.706,772.467,444.978,184.258,996.959,890.35
Revenue (%)
Operating Cash Flow 705.15966.101,050.101,137.70991.201,304.431,433.961,576.361,732.891,904.97
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 329.19572.60690.40714.60509.40757.20832.39915.051,005.911,105.80

Weighted Average Cost Of Capital

Share price $ 415.08
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 7.768
Total Debt 5,428
Total Equity 25,942.50
Total Capital 31,370.50
Debt Weighting 17.30
Equity Weighting 82.70
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 4,244.274,739.104,729.905,4146,160.706,772.467,444.978,184.258,996.959,890.35
Operating Cash Flow 705.15966.101,050.101,137.70991.201,304.431,433.961,576.361,732.891,904.97
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 329.19572.60690.40714.60509.40757.20832.39915.051,005.911,105.80
WACC
PV LFCF 708.66729.08750.10771.72793.97
SUM PV LFCF 3,753.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.85
Free cash flow (t + 1) 1,127.91
Terminal Value 23,255.94
Present Value of Terminal Value 16,697.88

Intrinsic Value

Enterprise Value 20,451.41
Net Debt 5,070
Equity Value 15,381.41
Shares Outstanding 62.50
Equity Value Per Share 246.10