Discounted Cash Flow (DCF) Analysis Levered

RBC Bearings Incorporated (RBC)

$234.02

-0.46 (-0.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 192.60 | 234.02 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 702.52727.46608.98942.941,469.291,828.992,276.742,834.103,527.924,391.58
Revenue (%)
Operating Cash Flow 108.55155.62152.45180.29220.60351.21437.19544.22677.44843.29
Operating Cash Flow (%)
Capital Expenditure -41.35-37.30-11.77-29.76-42-69.36-86.33-107.47-133.78-166.53
Capital Expenditure (%)
Free Cash Flow 67.20118.32140.68150.53178.60281.85350.85436.75543.67676.76

Weighted Average Cost Of Capital

Share price $ 234.02
Beta 1.411
Diluted Shares Outstanding 29.07
Cost of Debt
Tax Rate 20.52
After-tax Cost of Debt 4.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.281
Total Debt 1,441.70
Total Equity 6,803.53
Total Capital 8,245.23
Debt Weighting 17.49
Equity Weighting 82.51
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 702.52727.46608.98942.941,469.291,828.992,276.742,834.103,527.924,391.58
Operating Cash Flow 108.55155.62152.45180.29220.60351.21437.19544.22677.44843.29
Capital Expenditure -41.35-37.30-11.77-29.76-42-69.36-86.33-107.47-133.78-166.53
Free Cash Flow 67.20118.32140.68150.53178.60281.85350.85436.75543.67676.76
WACC
PV LFCF 232.73263.24297.76336.81380.97
SUM PV LFCF 1,663.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.05
Free cash flow (t + 1) 690.29
Terminal Value 8,575.08
Present Value of Terminal Value 5,312.37

Intrinsic Value

Enterprise Value 6,975.78
Net Debt 1,376.30
Equity Value 5,599.48
Shares Outstanding 29.07
Equity Value Per Share 192.60