Discounted Cash Flow (DCF) Analysis Levered

Ruth's Hospitality Group, Inc. (RUTH)

$16.62

+0.37 (+2.28%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.34 | 16.62 | 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 414.82452.33468.03277.75429.12457.40487.54519.66553.91590.40
Revenue (%)
Operating Cash Flow 68.6978.2972.9120.0881.3969.2073.7678.6283.8089.32
Operating Cash Flow (%)
Capital Expenditure -21.25-31.91-31.67-10.62-19.65-25.02-26.67-28.42-30.30-32.29
Capital Expenditure (%)
Free Cash Flow 47.4446.3941.249.4661.7444.1847.0950.2053.5157.03

Weighted Average Cost Of Capital

Share price $ 16.62
Beta 1.942
Diluted Shares Outstanding 34.47
Cost of Debt
Tax Rate 8.77
After-tax Cost of Debt 1.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.136
Total Debt 313.68
Total Equity 572.86
Total Capital 886.55
Debt Weighting 35.38
Equity Weighting 64.62
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 414.82452.33468.03277.75429.12457.40487.54519.66553.91590.40
Operating Cash Flow 68.6978.2972.9120.0881.3969.2073.7678.6283.8089.32
Capital Expenditure -21.25-31.91-31.67-10.62-19.65-25.02-26.67-28.42-30.30-32.29
Free Cash Flow 47.4446.3941.249.4661.7444.1847.0950.2053.5157.03
WACC
PV LFCF 34.2633.5532.8532.1731.50
SUM PV LFCF 194.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.85
Free cash flow (t + 1) 58.17
Terminal Value 849.21
Present Value of Terminal Value 555.74

Intrinsic Value

Enterprise Value 750.44
Net Debt 221.55
Equity Value 528.89
Shares Outstanding 34.47
Equity Value Per Share 15.34