Discounted Cash Flow (DCF) Analysis Levered

Neogen Corporation (NEOG)

$18.51

-0.02 (-0.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 11.30 | 18.51 | 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	402.25	414.19	418.17	468.46	527.16	564.70	604.91	647.99	694.14	743.57
Revenue (%)
Operating Cash Flow	69.13	63.84	85.88	81.09	68.04	94.14	100.84	108.02	115.72	123.96
Operating Cash Flow (%)
Capital Expenditure	-20.95	-14.66	-24.05	-26.71	-24.43	-28.05	-30.05	-32.19	-34.48	-36.93
Capital Expenditure (%)
Free Cash Flow	48.18	49.18	61.83	54.38	43.61	66.09	70.80	75.84	81.24	87.02

Weighted Average Cost Of Capital

Share price	$ 18.51
Beta	0.997
Diluted Shares Outstanding	108.02
Cost of Debt
Tax Rate	19.77
After-tax Cost of Debt	0.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.396
Total Debt	986.69
Total Equity	1,999.45
Total Capital	2,986.14
Debt Weighting	33.04
Equity Weighting	66.96
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	402.25	414.19	418.17	468.46	527.16	564.70	604.91	647.99	694.14	743.57
Operating Cash Flow	69.13	63.84	85.88	81.09	68.04	94.14	100.84	108.02	115.72	123.96
Capital Expenditure	-20.95	-14.66	-24.05	-26.71	-24.43	-28.05	-30.05	-32.19	-34.48	-36.93
Free Cash Flow	48.18	49.18	61.83	54.38	43.61	66.09	70.80	75.84	81.24	87.02
WACC
PV LFCF						62.55	63.41	64.29	65.18	66.08
SUM PV LFCF										321.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.66
Free cash flow (t + 1)	88.76
Terminal Value	2,425.26
Present Value of Terminal Value	1,841.64

Intrinsic Value

Enterprise Value	2,163.16
Net Debt	942.22
Equity Value	1,220.95
Shares Outstanding	108.02
Equity Value Per Share	11.30