Discounted Cash Flow (DCF) Analysis Levered
Republic Services, Inc. (RSG)
$124.1
+1.02 (+0.83%)
All numbers are in Millions, Currency in USD
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 | 10,041.50 | 10,040.90 | 10,299.40 | 10,153.60 | 11,295 | 11,644.98 | 12,005.81 | 12,377.81 | 12,761.35 | 13,156.76 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,910.70 | 2,242.80 | 2,352.10 | 2,471.60 | 2,786 | 2,636.65 | 2,718.35 | 2,802.58 | 2,889.42 | 2,978.95 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -989.80 | -1,071.80 | -1,207.10 | -1,194.60 | -1,316 | -1,296.51 | -1,336.68 | -1,378.10 | -1,420.80 | -1,464.82 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 920.90 | 1,171 | 1,145 | 1,277 | 1,470 | 1,340.15 | 1,381.67 | 1,424.48 | 1,468.62 | 1,514.13 |
Weighted Average Cost Of Capital
| Share price | $ 124.1 |
|---|---|
| Beta | 0.698 |
| Diluted Shares Outstanding | 319.40 |
| Cost of Debt | |
| Tax Rate | 17.97 |
| After-tax Cost of Debt | -2.69% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.914 |
| Total Debt | 9,562 |
| Total Equity | 39,637.54 |
| Total Capital | 49,199.54 |
| Debt Weighting | 19.44 |
| Equity Weighting | 80.56 |
| 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 | 10,041.50 | 10,040.90 | 10,299.40 | 10,153.60 | 11,295 | 11,644.98 | 12,005.81 | 12,377.81 | 12,761.35 | 13,156.76 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,910.70 | 2,242.80 | 2,352.10 | 2,471.60 | 2,786 | 2,636.65 | 2,718.35 | 2,802.58 | 2,889.42 | 2,978.95 |
| Capital Expenditure | -989.80 | -1,071.80 | -1,207.10 | -1,194.60 | -1,316 | -1,296.51 | -1,336.68 | -1,378.10 | -1,420.80 | -1,464.82 |
| Free Cash Flow | 920.90 | 1,171 | 1,145 | 1,277 | 1,470 | 1,340.15 | 1,381.67 | 1,424.48 | 1,468.62 | 1,514.13 |
| WACC | ||||||||||
| PV LFCF | 997.19 | 978.66 | 960.48 | 942.64 | 925.13 | |||||
| SUM PV LFCF | 6,145.99 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.05 |
| Free cash flow (t + 1) | 1,544.41 |
| Terminal Value | 50,636.42 |
| Present Value of Terminal Value | 39,580.63 |
Intrinsic Value
| Enterprise Value | 45,726.62 |
|---|---|
| Net Debt | 9,533 |
| Equity Value | 36,193.62 |
| Shares Outstanding | 319.40 |
| Equity Value Per Share | 113.32 |