Discounted Cash Flow (DCF) Analysis Levered

PriceSmart, Inc. (PSMT)

$60.12

-0.53 (-0.87%)
All numbers are in Millions, Currency in USD
Stock DCF: 37.48 | 60.12 | overvalue

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 2,996.633,166.703,223.923,329.193,619.873,796.153,981.014,174.884,378.184,591.39
Revenue (%)
Operating Cash Flow 122.86119.45170.33259.27127.17185.68194.72204.20214.15224.57
Operating Cash Flow (%)
Capital Expenditure -135.29-98.11-140.06-100.32-113.17-137.40-144.09-151.11-158.47-166.18
Capital Expenditure (%)
Free Cash Flow -12.4421.3430.27158.9513.9948.2850.6353.0955.6858.39

Weighted Average Cost Of Capital

Share price $ 60.12
Beta 0.709
Diluted Shares Outstanding 30.40
Cost of Debt
Tax Rate 33.44
After-tax Cost of Debt 1.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.106
Total Debt 267.29
Total Equity 1,827.83
Total Capital 2,095.12
Debt Weighting 12.76
Equity Weighting 87.24
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 2,996.633,166.703,223.923,329.193,619.873,796.153,981.014,174.884,378.184,591.39
Operating Cash Flow 122.86119.45170.33259.27127.17185.68194.72204.20214.15224.57
Capital Expenditure -135.29-98.11-140.06-100.32-113.17-137.40-144.09-151.11-158.47-166.18
Free Cash Flow -12.4421.3430.27158.9513.9948.2850.6353.0955.6858.39
WACC
PV LFCF 45.3644.7044.0443.4042.76
SUM PV LFCF 220.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.43
Free cash flow (t + 1) 59.56
Terminal Value 1,344.46
Present Value of Terminal Value 984.53

Intrinsic Value

Enterprise Value 1,204.78
Net Debt 65.23
Equity Value 1,139.55
Shares Outstanding 30.40
Equity Value Per Share 37.48