Discounted Cash Flow (DCF) Analysis Levered

NL Industries, Inc. (NL)

$5.09

-0.04 (-0.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 13.02 | 5.09 | 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 118.20124.20114.50140.80166.60182.66200.27219.57240.74263.95
Revenue (%)
Operating Cash Flow 17.0827.4319.0217.6126.9329.8932.7735.9339.4043.19
Operating Cash Flow (%)
Capital Expenditure -3.12-3.17-1.74-4.09-3.69-4.32-4.74-5.20-5.70-6.25
Capital Expenditure (%)
Free Cash Flow 13.9624.2717.2813.5223.2425.5728.0330.7433.7036.95

Weighted Average Cost Of Capital

Share price $ 5.09
Beta 0.669
Diluted Shares Outstanding 48.80
Cost of Debt
Tax Rate 13.66
After-tax Cost of Debt 172.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.486
Total Debt 0.50
Total Equity 248.39
Total Capital 248.89
Debt Weighting 0.20
Equity Weighting 99.80
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 118.20124.20114.50140.80166.60182.66200.27219.57240.74263.95
Operating Cash Flow 17.0827.4319.0217.6126.9329.8932.7735.9339.4043.19
Capital Expenditure -3.12-3.17-1.74-4.09-3.69-4.32-4.74-5.20-5.70-6.25
Free Cash Flow 13.9624.2717.2813.5223.2425.5728.0330.7433.7036.95
WACC
PV LFCF 23.7124.1124.5224.9425.36
SUM PV LFCF 122.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.82
Free cash flow (t + 1) 37.69
Terminal Value 647.52
Present Value of Terminal Value 444.39

Intrinsic Value

Enterprise Value 567.03
Net Debt -68.37
Equity Value 635.39
Shares Outstanding 48.80
Equity Value Per Share 13.02