Discounted Cash Flow (DCF) Analysis Levered
Richelieu Hardware Ltd. (RCH.TO)
$38.65
+0.52 (+1.36%)
All numbers are in Millions, Currency in USD
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 | 942.54 | 1,004.40 | 1,041.65 | 1,127.84 | 1,440.42 | 1,607 | 1,792.85 | 2,000.20 | 2,231.52 | 2,489.59 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 55.96 | 42.27 | 88.17 | 145.71 | 104.41 | 124.63 | 139.04 | 155.12 | 173.06 | 193.08 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -13.12 | -12.37 | -10.56 | -12.44 | -17.05 | -19.04 | -21.24 | -23.70 | -26.44 | -29.50 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 42.84 | 29.90 | 77.61 | 133.27 | 87.35 | 105.59 | 117.80 | 131.42 | 146.62 | 163.58 |
Weighted Average Cost Of Capital
Share price | $ 38.65 |
---|---|
Beta | 1.069 |
Diluted Shares Outstanding | 56.31 |
Cost of Debt | |
Tax Rate | 27.20 |
After-tax Cost of Debt | 1.97% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.809 |
Total Debt | 99.49 |
Total Equity | 2,176.57 |
Total Capital | 2,276.07 |
Debt Weighting | 4.37 |
Equity Weighting | 95.63 |
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 | 942.54 | 1,004.40 | 1,041.65 | 1,127.84 | 1,440.42 | 1,607 | 1,792.85 | 2,000.20 | 2,231.52 | 2,489.59 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 55.96 | 42.27 | 88.17 | 145.71 | 104.41 | 124.63 | 139.04 | 155.12 | 173.06 | 193.08 |
Capital Expenditure | -13.12 | -12.37 | -10.56 | -12.44 | -17.05 | -19.04 | -21.24 | -23.70 | -26.44 | -29.50 |
Free Cash Flow | 42.84 | 29.90 | 77.61 | 133.27 | 87.35 | 105.59 | 117.80 | 131.42 | 146.62 | 163.58 |
WACC | ||||||||||
PV LFCF | 98.18 | 101.84 | 105.64 | 109.59 | 113.68 | |||||
SUM PV LFCF | 528.93 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.55 |
Free cash flow (t + 1) | 166.85 |
Terminal Value | 3,006.34 |
Present Value of Terminal Value | 2,089.23 |
Intrinsic Value
Enterprise Value | 2,618.16 |
---|---|
Net Debt | 40.79 |
Equity Value | 2,577.37 |
Shares Outstanding | 56.31 |
Equity Value Per Share | 45.77 |