Discounted Cash Flow (DCF) Analysis Levered

Ruth's Hospitality Group, Inc. (RUTH)

$21.49

+0.01 (+0.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.88 | 21.49 | 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	452.33	468.03	277.75	429.12	505.86	550.37	598.80	651.48	708.81	771.18
Revenue (%)
Operating Cash Flow	78.29	72.91	20.08	81.39	67.20	79.66	86.67	94.30	102.59	111.62
Operating Cash Flow (%)
Capital Expenditure	-31.91	-31.67	-10.62	-19.65	-46.96	-34.68	-37.73	-41.05	-44.66	-48.59
Capital Expenditure (%)
Free Cash Flow	46.39	41.24	9.46	61.74	20.24	44.98	48.94	53.24	57.93	63.03

Weighted Average Cost Of Capital

Share price	$ 21.49
Beta	1.831
Diluted Shares Outstanding	33.50
Cost of Debt
Tax Rate	15.36
After-tax Cost of Debt	0.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.384
Total Debt	265.36
Total Equity	719.83
Total Capital	985.19
Debt Weighting	26.94
Equity Weighting	73.06
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	452.33	468.03	277.75	429.12	505.86	550.37	598.80	651.48	708.81	771.18
Operating Cash Flow	78.29	72.91	20.08	81.39	67.20	79.66	86.67	94.30	102.59	111.62
Capital Expenditure	-31.91	-31.67	-10.62	-19.65	-46.96	-34.68	-37.73	-41.05	-44.66	-48.59
Free Cash Flow	46.39	41.24	9.46	61.74	20.24	44.98	48.94	53.24	57.93	63.03
WACC
PV LFCF						40.92	40.51	40.10	39.70	39.30
SUM PV LFCF										200.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.91
Free cash flow (t + 1)	64.29
Terminal Value	812.73
Present Value of Terminal Value	506.71

Intrinsic Value

Enterprise Value	707.24
Net Debt	242.36
Equity Value	464.88
Shares Outstanding	33.50
Equity Value Per Share	13.88