Discounted Cash Flow (DCF) Analysis Levered

The ODP Corporation (ODP)

$51.945

-0.65 (-1.23%)

All numbers are in Millions, Currency in USD

Stock DCF: 53.45 | 51.945 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	10,240	11,015	10,647	9,710	8,465	8,096.88	7,744.77	7,407.97	7,085.81	6,777.67
Revenue (%)
Operating Cash Flow	458	627	366	485	346	367.35	351.38	336.10	321.48	307.50
Operating Cash Flow (%)
Capital Expenditure	-183	-187	-150	-68	-73	-104.55	-100.01	-95.66	-91.50	-87.52
Capital Expenditure (%)
Free Cash Flow	275	440	216	417	273	262.80	251.37	240.44	229.98	219.98

Weighted Average Cost Of Capital

Share price	$ 51.945
Beta	1.848
Diluted Shares Outstanding	52.93
Cost of Debt
Tax Rate	190.04
After-tax Cost of Debt	-2.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.338
Total Debt	1,001
Total Equity	2,749.25
Total Capital	3,750.25
Debt Weighting	26.69
Equity Weighting	73.31
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	10,240	11,015	10,647	9,710	8,465	8,096.88	7,744.77	7,407.97	7,085.81	6,777.67
Operating Cash Flow	458	627	366	485	346	367.35	351.38	336.10	321.48	307.50
Capital Expenditure	-183	-187	-150	-68	-73	-104.55	-100.01	-95.66	-91.50	-87.52
Free Cash Flow	275	440	216	417	273	262.80	251.37	240.44	229.98	219.98
WACC
PV LFCF						162.24	143.20	126.40	111.56	98.47
SUM PV LFCF										959.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.37
Free cash flow (t + 1)	224.38
Terminal Value	3,522.47
Present Value of Terminal Value	2,356.69

Intrinsic Value

Enterprise Value	3,316.08
Net Debt	487
Equity Value	2,829.08
Shares Outstanding	52.93
Equity Value Per Share	53.45