Discounted Cash Flow (DCF) Analysis Levered

Preformed Line Products Company (PLPC)

$71.15

+1.19 (+1.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 108.50 | 71.15 | 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 378.21420.88444.86466.45517.42559.79605.64655.24708.90766.96
Revenue (%)
Operating Cash Flow 33.8322.9827.2241.6433.6040.2443.5447.1050.9655.13
Operating Cash Flow (%)
Capital Expenditure -11.23-9.53-29.47-24.57-18.38-23.15-25.05-27.10-29.32-31.72
Capital Expenditure (%)
Free Cash Flow 22.6013.45-2.2517.0715.2117.0918.492021.6423.41

Weighted Average Cost Of Capital

Share price $ 71.15
Beta 0.734
Diluted Shares Outstanding 4.98
Cost of Debt
Tax Rate 26.94
After-tax Cost of Debt -2.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.268
Total Debt 72.78
Total Equity 354.61
Total Capital 427.39
Debt Weighting 17.03
Equity Weighting 82.97
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 378.21420.88444.86466.45517.42559.79605.64655.24708.90766.96
Operating Cash Flow 33.8322.9827.2241.6433.6040.2443.5447.1050.9655.13
Capital Expenditure -11.23-9.53-29.47-24.57-18.38-23.15-25.05-27.10-29.32-31.72
Free Cash Flow 22.6013.45-2.2517.0715.2117.0918.492021.6423.41
WACC
PV LFCF 16.1716.5616.9517.3517.76
SUM PV LFCF 84.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.68
Free cash flow (t + 1) 23.88
Terminal Value 649
Present Value of Terminal Value 492.35

Intrinsic Value

Enterprise Value 577.15
Net Debt 36.37
Equity Value 540.77
Shares Outstanding 4.98
Equity Value Per Share 108.50