Discounted Cash Flow (DCF) Analysis Levered

Penske Automotive Group, Inc. (PAG)

$153.21

-1.43 (-0.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 211.96 | 153.21 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 23,179.4020,443.9025,554.7027,814.8029,527.4031,609.0133,837.3736,222.8238,776.4441,510.09
Revenue (%)
Operating Cash Flow 518.601,201.501,293.301,459433.901,257.421,346.061,440.961,542.541,651.29
Operating Cash Flow (%)
Capital Expenditure -245.30-185.90-248.90-282.50-375.30-330.52-353.82-378.76-405.47-434.05
Capital Expenditure (%)
Free Cash Flow 273.301,015.601,044.401,176.5058.60926.90992.241,062.191,137.081,217.24

Weighted Average Cost Of Capital

Share price $ 153.21
Beta 1.198
Diluted Shares Outstanding 67.96
Cost of Debt
Tax Rate 25.80
After-tax Cost of Debt 3.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.865
Total Debt 4,053.10
Total Equity 10,412.76
Total Capital 14,465.86
Debt Weighting 28.02
Equity Weighting 71.98
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 23,179.4020,443.9025,554.7027,814.8029,527.4031,609.0133,837.3736,222.8238,776.4441,510.09
Operating Cash Flow 518.601,201.501,293.301,459433.901,257.421,346.061,440.961,542.541,651.29
Capital Expenditure -245.30-185.90-248.90-282.50-375.30-330.52-353.82-378.76-405.47-434.05
Free Cash Flow 273.301,015.601,044.401,176.5058.60926.90992.241,062.191,137.081,217.24
WACC
PV LFCF 858.40851843.67836.40829.20
SUM PV LFCF 4,218.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.98
Free cash flow (t + 1) 1,241.58
Terminal Value 20,762.24
Present Value of Terminal Value 14,143.52

Intrinsic Value

Enterprise Value 18,362.20
Net Debt 3,956.70
Equity Value 14,405.50
Shares Outstanding 67.96
Equity Value Per Share 211.96