Discounted Cash Flow (DCF) Analysis Levered

RBC Bearings Incorporated (ROLL)

$212.38

-8.23 (-3.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 89.34 | 212.38 | 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 674.95702.52727.46608.98942.941,051.811,173.261,308.741,459.851,628.41
Revenue (%)
Operating Cash Flow 130.29108.55155.62152.45180.29211235.36262.54292.85326.66
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 102.3167.20118.32140.68150.53168.41187.85209.54233.74260.73

Weighted Average Cost Of Capital

Share price $ 212.38
Beta 1.341
Diluted Shares Outstanding 27.31
Cost of Debt
Tax Rate 25.83
After-tax Cost of Debt 0.96%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.835
Total Debt 1,736.94
Total Equity 5,800.32
Total Capital 7,537.26
Debt Weighting 23.04
Equity Weighting 76.96
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 674.95702.52727.46608.98942.941,051.811,173.261,308.741,459.851,628.41
Operating Cash Flow 130.29108.55155.62152.45180.29211235.36262.54292.85326.66
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 102.3167.20118.32140.68150.53168.41187.85209.54233.74260.73
WACC
PV LFCF 156.24161.68167.32173.15179.18
SUM PV LFCF 837.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.79
Free cash flow (t + 1) 265.94
Terminal Value 4,593.09
Present Value of Terminal Value 3,156.55

Intrinsic Value

Enterprise Value 3,994.11
Net Debt 1,554.08
Equity Value 2,440.03
Shares Outstanding 27.31
Equity Value Per Share 89.34