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
Stock DCF: 45.77 | 38.65 | undervalue

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 942.541,004.401,041.651,127.841,440.421,6071,792.852,000.202,231.522,489.59
Revenue (%)
Operating Cash Flow 55.9642.2788.17145.71104.41124.63139.04155.12173.06193.08
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 42.8429.9077.61133.2787.35105.59117.80131.42146.62163.58

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 942.541,004.401,041.651,127.841,440.421,6071,792.852,000.202,231.522,489.59
Operating Cash Flow 55.9642.2788.17145.71104.41124.63139.04155.12173.06193.08
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 42.8429.9077.61133.2787.35105.59117.80131.42146.62163.58
WACC
PV LFCF 98.18101.84105.64109.59113.68
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