Discounted Cash Flow (DCF) Analysis Levered

Navistar International Corporation (NAV)

$44.5

+0.07 (+0.16%)

All numbers are in Millions, Currency in USD

Stock DCF: -29.20 | 44.5 | overvalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	8,111	8,570	10,250	11,251	7,503	7,535.18	7,567.50	7,599.95	7,632.55	7,665.28
Revenue (%)
Operating Cash Flow	267	109	269	450	474	263.81	264.94	266.08	267.22	268.36
Operating Cash Flow (%)
Capital Expenditure	-248	-239	-345	-286	-245	-226.35	-227.32	-228.30	-229.28	-230.26
Capital Expenditure (%)
Free Cash Flow	19	-130	-76	164	229	37.46	37.62	37.78	37.94	38.11

Weighted Average Cost Of Capital

Share price	$ 44.5
Beta	1.880
Diluted Shares Outstanding	99.70
Cost of Debt
Tax Rate	10.57
After-tax Cost of Debt	4.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.590
Total Debt	5,330
Total Equity	4,436.65
Total Capital	9,766.65
Debt Weighting	54.57
Equity Weighting	45.43
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	8,111	8,570	10,250	11,251	7,503	7,535.18	7,567.50	7,599.95	7,632.55	7,665.28
Operating Cash Flow	267	109	269	450	474	263.81	264.94	266.08	267.22	268.36
Capital Expenditure	-248	-239	-345	-286	-245	-226.35	-227.32	-228.30	-229.28	-230.26
Free Cash Flow	19	-130	-76	164	229	37.46	37.62	37.78	37.94	38.11
WACC
PV LFCF						34.63	32.15	29.85	27.71	25.73
SUM PV LFCF										150.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.17
Free cash flow (t + 1)	38.87
Terminal Value	629.95
Present Value of Terminal Value	425.38

Intrinsic Value

Enterprise Value	575.46
Net Debt	3,487
Equity Value	-2,911.54
Shares Outstanding	99.70
Equity Value Per Share	-29.20