Discounted Cash Flow (DCF) Analysis Levered
Meritor, Inc. (MTOR)
$36.09
+0.15 (+0.42%)
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 | 3,347 | 4,178 | 4,388 | 3,044 | 3,833 | 4,073.96 | 4,330.06 | 4,602.26 | 4,891.58 | 5,199.08 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 176 | 251 | 256 | 265 | 197 | 252.14 | 267.99 | 284.84 | 302.74 | 321.78 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -95 | -104 | -103 | -85 | -90 | -104.42 | -110.98 | -117.96 | -125.37 | -133.26 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 81 | 147 | 153 | 180 | 107 | 147.72 | 157.01 | 166.88 | 177.37 | 188.52 |
Weighted Average Cost Of Capital
Share price | $ 36.09 |
---|---|
Beta | 1.754 |
Diluted Shares Outstanding | 72.80 |
Cost of Debt | |
Tax Rate | 14.96 |
After-tax Cost of Debt | 6.54% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.068 |
Total Debt | 1,027 |
Total Equity | 2,627.35 |
Total Capital | 3,654.35 |
Debt Weighting | 28.10 |
Equity Weighting | 71.90 |
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 | 3,347 | 4,178 | 4,388 | 3,044 | 3,833 | 4,073.96 | 4,330.06 | 4,602.26 | 4,891.58 | 5,199.08 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 176 | 251 | 256 | 265 | 197 | 252.14 | 267.99 | 284.84 | 302.74 | 321.78 |
Capital Expenditure | -95 | -104 | -103 | -85 | -90 | -104.42 | -110.98 | -117.96 | -125.37 | -133.26 |
Free Cash Flow | 81 | 147 | 153 | 180 | 107 | 147.72 | 157.01 | 166.88 | 177.37 | 188.52 |
WACC | ||||||||||
PV LFCF | 122.53 | 118.61 | 114.81 | 111.14 | 107.58 | |||||
SUM PV LFCF | 630.99 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 9.80 |
Free cash flow (t + 1) | 192.29 |
Terminal Value | 2,465.26 |
Present Value of Terminal Value | 1,544.72 |
Intrinsic Value
Enterprise Value | 2,175.71 |
---|---|
Net Debt | 926 |
Equity Value | 1,249.71 |
Shares Outstanding | 72.80 |
Equity Value Per Share | 17.17 |