Discounted Cash Flow (DCF) Analysis Levered

Rollins, Inc. (ROL)

$45.08

+1.08 (+2.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.74 | 45.08 | undervalue

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 2,015.482,161.222,424.302,695.823,073.283,415.993,796.924,220.334,690.955,214.06
Revenue (%)
Operating Cash Flow 309.19435.79401.81465.93528.37591.34657.28730.57812.04902.60
Operating Cash Flow (%)
Capital Expenditure -27.15-23.23-27.19-30.63-32.47-39.19-43.56-48.41-53.81-59.81
Capital Expenditure (%)
Free Cash Flow 282.04412.56374.61435.30495.90552.15613.72682.16758.23842.78

Weighted Average Cost Of Capital

Share price $ 45.08
Beta 0.632
Diluted Shares Outstanding 490.13
Cost of Debt
Tax Rate 25.81
After-tax Cost of Debt 3.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.145
Total Debt 816.35
Total Equity 22,095.06
Total Capital 22,911.41
Debt Weighting 3.56
Equity Weighting 96.44
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 2,015.482,161.222,424.302,695.823,073.283,415.993,796.924,220.334,690.955,214.06
Operating Cash Flow 309.19435.79401.81465.93528.37591.34657.28730.57812.04902.60
Capital Expenditure -27.15-23.23-27.19-30.63-32.47-39.19-43.56-48.41-53.81-59.81
Free Cash Flow 282.04412.56374.61435.30495.90552.15613.72682.16758.23842.78
WACC
PV LFCF 516.03536.05556.85578.45600.89
SUM PV LFCF 2,788.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.00
Free cash flow (t + 1) 876.49
Terminal Value 29,216.49
Present Value of Terminal Value 20,830.95

Intrinsic Value

Enterprise Value 23,619.22
Net Debt 712.52
Equity Value 22,906.70
Shares Outstanding 490.13
Equity Value Per Share 46.74