Discounted Cash Flow (DCF) Analysis Levered

Primo Water Corporation (PRMW)

$13.25

+0.37 (+2.87%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.75 | 13.25 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,269.702,372.902,394.501,953.501,869.111,788.361,711.101,637.181,566.461,498.791,434.04
Revenue (%)
Operating Cash Flow 278.70146.70246.80176.20176.58168.95161.65154.67147.98141.59135.47
Operating Cash Flow (%)
Capital Expenditure -126.90-144-125.50-123.30-108.47-103.78-99.30-95.01-90.90-86.98-83.22
Capital Expenditure (%)
Free Cash Flow 151.802.70121.3052.9068.1165.1762.3559.6657.0854.6152.26

Weighted Average Cost Of Capital

Share price $ 13.25
Beta 1.202
Diluted Shares Outstanding 160.78
Cost of Debt
Tax Rate 150.79
After-tax Cost of Debt -2.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.291
Total Debt 1,741.90
Total Equity 2,130.31
Total Capital 3,872.21
Debt Weighting 44.98
Equity Weighting 55.02
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,269.702,372.902,394.501,953.501,869.111,788.361,711.101,637.181,566.461,498.791,434.04
Operating Cash Flow 278.70146.70246.80176.20176.58168.95161.65154.67147.98141.59135.47
Capital Expenditure -126.90-144-125.50-123.30-108.47-103.78-99.30-95.01-90.90-86.98-83.22
Free Cash Flow 151.802.70121.3052.9068.1165.1762.3559.6657.0854.6152.26
WACC
PV LFCF 68.1162.5357.4152.7248.4044.4440.80
SUM PV LFCF 254.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.21
Free cash flow (t + 1) 53.30
Terminal Value 2,411.77
Present Value of Terminal Value 1,962.41

Intrinsic Value

Enterprise Value 2,216.44
Net Debt 1,613.50
Equity Value 602.94
Shares Outstanding 160.78
Equity Value Per Share 3.75