Discounted Cash Flow (DCF) Analysis Levered

RBC Bearings Incorporated (RBC)

$206.02

-2.25 (-1.08%)

All numbers are in Millions, Currency in USD

Stock DCF: 76.60 | 206.02 | 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	674.95	702.52	727.46	608.98	942.94	1,051.81	1,173.26	1,308.74	1,459.85	1,628.41
Revenue (%)
Operating Cash Flow	130.29	108.55	155.62	152.45	180.29	211	235.36	262.54	292.85	326.66
Operating Cash Flow (%)
Capital Expenditure	-27.98	-41.35	-37.30	-11.77	-29.76	-42.59	-47.51	-52.99	-59.11	-65.94
Capital Expenditure (%)
Free Cash Flow	102.31	67.20	118.32	140.68	150.53	168.41	187.85	209.54	233.74	260.73

Weighted Average Cost Of Capital

Share price	$ 206.02
Beta	1.426
Diluted Shares Outstanding	27.21
Cost of Debt
Tax Rate	39.52
After-tax Cost of Debt	1.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.467
Total Debt	1,733.08
Total Equity	5,606.68
Total Capital	7,339.76
Debt Weighting	23.61
Equity Weighting	76.39
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	674.95	702.52	727.46	608.98	942.94	1,051.81	1,173.26	1,308.74	1,459.85	1,628.41
Operating Cash Flow	130.29	108.55	155.62	152.45	180.29	211	235.36	262.54	292.85	326.66
Capital Expenditure	-27.98	-41.35	-37.30	-11.77	-29.76	-42.59	-47.51	-52.99	-59.11	-65.94
Free Cash Flow	102.31	67.20	118.32	140.68	150.53	168.41	187.85	209.54	233.74	260.73
WACC
PV LFCF						155.44	160.04	164.78	169.66	174.68
SUM PV LFCF										824.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.34
Free cash flow (t + 1)	265.94
Terminal Value	4,194.64
Present Value of Terminal Value	2,810.28

Intrinsic Value

Enterprise Value	3,634.88
Net Debt	1,550.22
Equity Value	2,084.67
Shares Outstanding	27.21
Equity Value Per Share	76.60