Discounted Cash Flow (DCF) Analysis Levered

Primo Water Corporation (PRMW)

$15.75

+0.46 (+3.01%)
All numbers are in Millions, Currency in USD
Stock DCF: -2.35 | 15.75 | overvalue

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 2,372.902,394.501,953.502,073.302,215.102,189.992,165.162,140.612,116.342,092.35
Revenue (%)
Operating Cash Flow 146.70246.80176.20256.90281.60221.68219.17216.68214.23211.80
Operating Cash Flow (%)
Capital Expenditure -144-125.50-123.30-161.70-216.60-154.17-152.42-150.69-148.99-147.30
Capital Expenditure (%)
Free Cash Flow 2.70121.3052.9095.206567.5166.7565.9965.2464.50

Weighted Average Cost Of Capital

Share price $ 15.75
Beta 1.192
Diluted Shares Outstanding 161.88
Cost of Debt
Tax Rate 39.96
After-tax Cost of Debt 2.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.911
Total Debt 1,723.80
Total Equity 2,549.69
Total Capital 4,273.49
Debt Weighting 40.34
Equity Weighting 59.66
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 2,372.902,394.501,953.502,073.302,215.102,189.992,165.162,140.612,116.342,092.35
Operating Cash Flow 146.70246.80176.20256.90281.60221.68219.17216.68214.23211.80
Capital Expenditure -144-125.50-123.30-161.70-216.60-154.17-152.42-150.69-148.99-147.30
Free Cash Flow 2.70121.3052.9095.206567.5166.7565.9965.2464.50
WACC
PV LFCF 63.1258.3553.9449.8746.10
SUM PV LFCF 271.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.95
Free cash flow (t + 1) 65.79
Terminal Value 1,329.12
Present Value of Terminal Value 949.86

Intrinsic Value

Enterprise Value 1,221.24
Net Debt 1,601.20
Equity Value -379.96
Shares Outstanding 161.88
Equity Value Per Share -2.35