Discounted Cash Flow (DCF) Analysis Levered
Polaris Inc. (PII)
$89.87
+1.55 (+1.75%)
All numbers are in Millions, Currency in USD
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 | 6,078.54 | 6,782.52 | 7,027.90 | 8,198.20 | 8,589 | 9,375.29 | 10,233.56 | 11,170.39 | 12,193 | 13,309.22 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 477.11 | 655.04 | 1,018.60 | 293.70 | 508.60 | 778.23 | 849.48 | 927.24 | 1,012.13 | 1,104.79 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -225.41 | -251.37 | -213.90 | -298.30 | -306.60 | -331.26 | -361.58 | -394.68 | -430.81 | -470.25 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 251.70 | 403.66 | 804.70 | -4.60 | 202 | 446.98 | 487.90 | 532.56 | 581.32 | 634.53 |
Weighted Average Cost Of Capital
Share price | $ 89.87 |
---|---|
Beta | 1.609 |
Diluted Shares Outstanding | 60.10 |
Cost of Debt | |
Tax Rate | 20.75 |
After-tax Cost of Debt | 3.26% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.704 |
Total Debt | 2,168.90 |
Total Equity | 5,401.19 |
Total Capital | 7,570.09 |
Debt Weighting | 28.65 |
Equity Weighting | 71.35 |
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 | 6,078.54 | 6,782.52 | 7,027.90 | 8,198.20 | 8,589 | 9,375.29 | 10,233.56 | 11,170.39 | 12,193 | 13,309.22 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 477.11 | 655.04 | 1,018.60 | 293.70 | 508.60 | 778.23 | 849.48 | 927.24 | 1,012.13 | 1,104.79 |
Capital Expenditure | -225.41 | -251.37 | -213.90 | -298.30 | -306.60 | -331.26 | -361.58 | -394.68 | -430.81 | -470.25 |
Free Cash Flow | 251.70 | 403.66 | 804.70 | -4.60 | 202 | 446.98 | 487.90 | 532.56 | 581.32 | 634.53 |
WACC | ||||||||||
PV LFCF | 409.02 | 408.55 | 408.08 | 407.61 | 407.15 | |||||
SUM PV LFCF | 2,040.41 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 9.28 |
Free cash flow (t + 1) | 647.22 |
Terminal Value | 8,890.43 |
Present Value of Terminal Value | 5,704.52 |
Intrinsic Value
Enterprise Value | 7,744.94 |
---|---|
Net Debt | 1,844.40 |
Equity Value | 5,900.54 |
Shares Outstanding | 60.10 |
Equity Value Per Share | 98.18 |