Discounted Cash Flow (DCF) Analysis Levered

Republic Services, Inc. (RSG)

$124.1

+1.02 (+0.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 113.32 | 124.1 | overvalue

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 10,041.5010,040.9010,299.4010,153.6011,29511,644.9812,005.8112,377.8112,761.3513,156.76
Revenue (%)
Operating Cash Flow 1,910.702,242.802,352.102,471.602,7862,636.652,718.352,802.582,889.422,978.95
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 920.901,1711,1451,2771,4701,340.151,381.671,424.481,468.621,514.13

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 10,041.5010,040.9010,299.4010,153.6011,29511,644.9812,005.8112,377.8112,761.3513,156.76
Operating Cash Flow 1,910.702,242.802,352.102,471.602,7862,636.652,718.352,802.582,889.422,978.95
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 920.901,1711,1451,2771,4701,340.151,381.671,424.481,468.621,514.13
WACC
PV LFCF 997.19978.66960.48942.64925.13
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