Discounted Cash Flow (DCF) Analysis Levered

Red Robin Gourmet Burgers, Inc. (RRGB)

$10.18

+0.18 (+1.85%)
All numbers are in Millions, Currency in USD
Stock DCF: -18.65 | 10.18 | 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 1,338.561,315.01868.711,162.081,266.621,2891,311.771,334.951,358.541,382.54
Revenue (%)
Operating Cash Flow 126.2957.9220.2347.2935.5359.4160.4561.5262.6163.72
Operating Cash Flow (%)
Capital Expenditure -50.27-57.31-22.13-42.26-38.16-44.63-45.42-46.22-47.03-47.87
Capital Expenditure (%)
Free Cash Flow 76.020.61-1.905.03-2.6314.7815.0415.3115.5815.85

Weighted Average Cost Of Capital

Share price $ 10.18
Beta 2.903
Diluted Shares Outstanding 15.84
Cost of Debt
Tax Rate -0.97
After-tax Cost of Debt 4.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.812
Total Debt 647.08
Total Equity 161.25
Total Capital 808.33
Debt Weighting 80.05
Equity Weighting 19.95
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 1,338.561,315.01868.711,162.081,266.621,2891,311.771,334.951,358.541,382.54
Operating Cash Flow 126.2957.9220.2347.2935.5359.4160.4561.5262.6163.72
Capital Expenditure -50.27-57.31-22.13-42.26-38.16-44.63-45.42-46.22-47.03-47.87
Free Cash Flow 76.020.61-1.905.03-2.6314.7815.0415.3115.5815.85
WACC
PV LFCF 13.8313.1812.5511.9511.39
SUM PV LFCF 62.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.84
Free cash flow (t + 1) 16.17
Terminal Value 334.05
Present Value of Terminal Value 239.96

Intrinsic Value

Enterprise Value 302.86
Net Debt 598.25
Equity Value -295.40
Shares Outstanding 15.84
Equity Value Per Share -18.65