Discounted Cash Flow (DCF) Analysis Levered

NewMarket Corporation (NEU)

$394.87

-2.43 (-0.61%)

All numbers are in Millions, Currency in USD

Stock DCF: 597.93 | 394.87 | undervalue

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	2,289.68	2,190.29	2,010.93	2,356.11	2,764.80	2,916.74	3,077.02	3,246.12	3,424.51	3,612.70
Revenue (%)
Operating Cash Flow	197.91	337.21	284.15	165.34	108.62	286.52	302.26	318.87	336.39	354.88
Operating Cash Flow (%)
Capital Expenditure	-74.64	-59.43	-93.32	-78.93	-56.17	-93.31	-98.44	-103.85	-109.55	-115.57
Capital Expenditure (%)
Free Cash Flow	123.27	277.78	190.84	86.40	52.45	193.21	203.82	215.03	226.84	239.31

Weighted Average Cost Of Capital

Share price	$ 394.87
Beta	0.379
Diluted Shares Outstanding	10.84
Cost of Debt
Tax Rate	19.61
After-tax Cost of Debt	2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.495
Total Debt	1,066.27
Total Equity	4,280.88
Total Capital	5,347.16
Debt Weighting	19.94
Equity Weighting	80.06
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	2,289.68	2,190.29	2,010.93	2,356.11	2,764.80	2,916.74	3,077.02	3,246.12	3,424.51	3,612.70
Operating Cash Flow	197.91	337.21	284.15	165.34	108.62	286.52	302.26	318.87	336.39	354.88
Capital Expenditure	-74.64	-59.43	-93.32	-78.93	-56.17	-93.31	-98.44	-103.85	-109.55	-115.57
Free Cash Flow	123.27	277.78	190.84	86.40	52.45	193.21	203.82	215.03	226.84	239.31
WACC
PV LFCF						184.13	185.12	186.12	187.12	188.13
SUM PV LFCF										930.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.93
Free cash flow (t + 1)	244.09
Terminal Value	8,330.85
Present Value of Terminal Value	6,549.24

Intrinsic Value

Enterprise Value	7,479.86
Net Debt	997.56
Equity Value	6,482.30
Shares Outstanding	10.84
Equity Value Per Share	597.93