Discounted Cash Flow (DCF) Analysis Levered

Reynolds Consumer Products Inc. (REYN)

$26.97

+0.07 (+0.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 42.81 | 26.97 | undervalue

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	3,142	3,032	3,263	3,556	3,817	4,012.02	4,217	4,432.46	4,658.92	4,896.96
Revenue (%)
Operating Cash Flow	530	403	319	310	219	436.44	458.74	482.17	506.81	532.70
Operating Cash Flow (%)
Capital Expenditure	-82	-109	-143	-141	-128	-143.68	-151.02	-158.73	-166.84	-175.37
Capital Expenditure (%)
Free Cash Flow	448	294	176	169	91	292.76	307.72	323.44	339.97	357.34

Weighted Average Cost Of Capital

Share price	$ 26.97
Beta	0.469
Diluted Shares Outstanding	209.90
Cost of Debt
Tax Rate	23.67
After-tax Cost of Debt	2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.821
Total Debt	2,192
Total Equity	5,661
Total Capital	7,853
Debt Weighting	27.91
Equity Weighting	72.09
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	3,142	3,032	3,263	3,556	3,817	4,012.02	4,217	4,432.46	4,658.92	4,896.96
Operating Cash Flow	530	403	319	310	219	436.44	458.74	482.17	506.81	532.70
Capital Expenditure	-82	-109	-143	-141	-128	-143.68	-151.02	-158.73	-166.84	-175.37
Free Cash Flow	448	294	176	169	91	292.76	307.72	323.44	339.97	357.34
WACC
PV LFCF						278.98	279.43	279.88	280.33	280.78
SUM PV LFCF										1,399.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.94
Free cash flow (t + 1)	364.48
Terminal Value	12,397.35
Present Value of Terminal Value	9,741.45

Intrinsic Value

Enterprise Value	11,140.85
Net Debt	2,154
Equity Value	8,986.85
Shares Outstanding	209.90
Equity Value Per Share	42.81