Discounted Cash Flow (DCF) Analysis Levered

Phibro Animal Health Corporation (PAHC)

$13.2

+0.64 (+5.10%)

All numbers are in Millions, Currency in USD

Stock DCF: -5.72 | 13.2 | overvalue

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	828	800.40	833.40	942.30	977.89	1,021	1,066.01	1,113	1,162.07	1,213.29
Revenue (%)
Operating Cash Flow	47.17	59.35	48.31	31.65	13.31	48.25	50.37	52.59	54.91	57.33
Operating Cash Flow (%)
Capital Expenditure	-29.89	-34.04	-29.32	-37.04	-51.79	-42.08	-43.94	-45.88	-47.90	-50.01
Capital Expenditure (%)
Free Cash Flow	17.28	25.30	18.99	-5.39	-38.48	6.16	6.43	6.72	7.01	7.32

Weighted Average Cost Of Capital

Share price	$ 13.2
Beta	0.624
Diluted Shares Outstanding	40.50
Cost of Debt
Tax Rate	39.70
After-tax Cost of Debt	2.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.428
Total Debt	509.97
Total Equity	534.65
Total Capital	1,044.62
Debt Weighting	48.82
Equity Weighting	51.18
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	828	800.40	833.40	942.30	977.89	1,021	1,066.01	1,113	1,162.07	1,213.29
Operating Cash Flow	47.17	59.35	48.31	31.65	13.31	48.25	50.37	52.59	54.91	57.33
Capital Expenditure	-29.89	-34.04	-29.32	-37.04	-51.79	-42.08	-43.94	-45.88	-47.90	-50.01
Free Cash Flow	17.28	25.30	18.99	-5.39	-38.48	6.16	6.43	6.72	7.01	7.32
WACC
PV LFCF						5.88	5.85	5.83	5.81	5.78
SUM PV LFCF										29.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.84
Free cash flow (t + 1)	7.47
Terminal Value	263.04
Present Value of Terminal Value	207.68

Intrinsic Value

Enterprise Value	236.83
Net Debt	468.69
Equity Value	-231.86
Shares Outstanding	40.50
Equity Value Per Share	-5.72