Discounted Cash Flow (DCF) Analysis Levered

Nu Skin Enterprises, Inc. (NUS)

$23.28

-0.57 (-2.39%)

All numbers are in Millions, Currency in USD

Stock DCF: 24.15 | 23.28 | 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	2,679.01	2,420.42	2,581.93	2,695.67	2,225.66	2,136.58	2,051.06	1,968.97	1,890.16	1,814.50
Revenue (%)
Operating Cash Flow	202.74	177.93	379.14	141.58	108.06	169.69	162.90	156.38	150.12	144.11
Operating Cash Flow (%)
Capital Expenditure	-70.37	-66.07	-63.82	-68.61	-59.06	-55.67	-53.44	-51.30	-49.25	-47.28
Capital Expenditure (%)
Free Cash Flow	132.37	111.86	315.32	72.97	49.01	114.02	109.46	105.08	100.87	96.84

Weighted Average Cost Of Capital

Share price	$ 23.28
Beta	1.190
Diluted Shares Outstanding	50.52
Cost of Debt
Tax Rate	-17.77
After-tax Cost of Debt	4.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.056
Total Debt	479.01
Total Equity	1,176.22
Total Capital	1,655.23
Debt Weighting	28.94
Equity Weighting	71.06
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	2,679.01	2,420.42	2,581.93	2,695.67	2,225.66	2,136.58	2,051.06	1,968.97	1,890.16	1,814.50
Operating Cash Flow	202.74	177.93	379.14	141.58	108.06	169.69	162.90	156.38	150.12	144.11
Capital Expenditure	-70.37	-66.07	-63.82	-68.61	-59.06	-55.67	-53.44	-51.30	-49.25	-47.28
Free Cash Flow	132.37	111.86	315.32	72.97	49.01	114.02	109.46	105.08	100.87	96.84
WACC
PV LFCF						105.12	93.03	82.34	72.87	64.49
SUM PV LFCF										417.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.47
Free cash flow (t + 1)	98.77
Terminal Value	1,526.62
Present Value of Terminal Value	1,016.68

Intrinsic Value

Enterprise Value	1,434.52
Net Debt	214.28
Equity Value	1,220.24
Shares Outstanding	50.52
Equity Value Per Share	24.15