Discounted Cash Flow (DCF) Analysis Levered

Noodles & Company (NDLS)

$4.73

+0.06 (+1.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.81 | 4.73 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	462.41	393.66	475.15	489.01	503.27	517.95	533.06	548.61	564.61	581.08
Revenue (%)
Operating Cash Flow	30.06	9.12	36.17	26.78	27.56	28.37	29.19	30.05	30.92	31.82
Operating Cash Flow (%)
Capital Expenditure	-18.79	-11.78	-18.78	-17.94	-18.47	-19.01	-19.56	-20.13	-20.72	-21.32
Capital Expenditure (%)
Free Cash Flow	11.27	-2.66	17.39	8.84	9.09	9.36	9.63	9.91	10.20	10.50

Weighted Average Cost Of Capital

Share price	$ 4.73
Beta	1.466
Diluted Shares Outstanding	45.91
Cost of Debt
Tax Rate	-1.13
After-tax Cost of Debt	5.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.448
Total Debt	46.05
Total Equity	217.17
Total Capital	263.22
Debt Weighting	17.50
Equity Weighting	82.50
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	462.41	393.66	475.15	489.01	503.27	517.95	533.06	548.61	564.61	581.08
Operating Cash Flow	30.06	9.12	36.17	26.78	27.56	28.37	29.19	30.05	30.92	31.82
Capital Expenditure	-18.79	-11.78	-18.78	-17.94	-18.47	-19.01	-19.56	-20.13	-20.72	-21.32
Free Cash Flow	11.27	-2.66	17.39	8.84	9.09	9.36	9.63	9.91	10.20	10.50
WACC
PV LFCF				9.68	9.09	8.54	8.03	7.54	7.08	6.66
SUM PV LFCF										37.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.55
Free cash flow (t + 1)	10.71
Terminal Value	141.87
Present Value of Terminal Value	89.91

Intrinsic Value

Enterprise Value	127.77
Net Debt	44.53
Equity Value	83.24
Shares Outstanding	45.91
Equity Value Per Share	1.81