Discounted Cash Flow (DCF) Analysis Levered

Pizza Pizza Royalty Corp. (PZA.TO)

$14.02

+0.09 (+0.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 11.92 | 14.02 | 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	35.41	35.95	31.79	31.92	36.43	36.84	37.25	37.67	38.09	38.52
Revenue (%)
Operating Cash Flow	27.66	28.30	25.19	24.75	28.99	28.97	29.29	29.62	29.95	30.29
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	28.97	29.29	29.62	29.95	30.29

Weighted Average Cost Of Capital

Share price	$ 14.02
Beta	1.012
Diluted Shares Outstanding	32.18
Cost of Debt
Tax Rate	20.27
After-tax Cost of Debt	2.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.217
Total Debt	46.96
Total Equity	451.13
Total Capital	498.08
Debt Weighting	9.43
Equity Weighting	90.57
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	35.41	35.95	31.79	31.92	36.43	36.84	37.25	37.67	38.09	38.52
Operating Cash Flow	27.66	28.30	25.19	24.75	28.99	28.97	29.29	29.62	29.95	30.29
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	28.97	29.29	29.62	29.95	30.29
WACC
PV LFCF						26.68	24.85	23.15	21.57	20.09
SUM PV LFCF										116.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.56
Free cash flow (t + 1)	30.89
Terminal Value	470.96
Present Value of Terminal Value	312.34

Intrinsic Value

Enterprise Value	428.69
Net Debt	45.02
Equity Value	383.67
Shares Outstanding	32.18
Equity Value Per Share	11.92