Discounted Cash Flow (DCF) Analysis Levered

Penske Automotive Group, Inc. (PAG)

$98.43

+1.22 (+1.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 193.34 | 98.43 | 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 21,386.9022,785.1023,179.4020,443.9025,554.7026,926.0928,371.0729,893.5931,497.8233,188.14
Revenue (%)
Operating Cash Flow 623.50614.70518.601,201.801,293.301,011.881,066.181,123.401,183.681,247.21
Operating Cash Flow (%)
Capital Expenditure -247-305.60-245.30-185.90-248.90-292.83-308.55-325.11-342.55-360.94
Capital Expenditure (%)
Free Cash Flow 376.50309.10273.301,015.901,044.40719.05757.63798.29841.13886.27

Weighted Average Cost Of Capital

Share price $ 98.43
Beta 1.211
Diluted Shares Outstanding 79.75
Cost of Debt
Tax Rate 26.12
After-tax Cost of Debt 1.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.518
Total Debt 6,402.30
Total Equity 7,849.41
Total Capital 14,251.71
Debt Weighting 44.92
Equity Weighting 55.08
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 21,386.9022,785.1023,179.4020,443.9025,554.7026,926.0928,371.0729,893.5931,497.8233,188.14
Operating Cash Flow 623.50614.70518.601,201.801,293.301,011.881,066.181,123.401,183.681,247.21
Capital Expenditure -247-305.60-245.30-185.90-248.90-292.83-308.55-325.11-342.55-360.94
Free Cash Flow 376.50309.10273.301,015.901,044.40719.05757.63798.29841.13886.27
WACC
PV LFCF 680.08677.74675.41673.09670.77
SUM PV LFCF 3,377.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.73
Free cash flow (t + 1) 904
Terminal Value 24,235.79
Present Value of Terminal Value 18,342.82

Intrinsic Value

Enterprise Value 21,719.90
Net Debt 6,301.60
Equity Value 15,418.30
Shares Outstanding 79.75
Equity Value Per Share 193.34