Discounted Cash Flow (DCF) Analysis Levered

Sanderson Farms, Inc. (SAFM)

$204

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 214.79 | 204 | undervalue

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 3,342.233,2363,440.263,564.274,799.655,296.405,844.566,449.457,116.957,853.53
Revenue (%)
Operating Cash Flow 408.95131.41206.80222.01623.48439.89485.41535.65591.09652.27
Operating Cash Flow (%)
Capital Expenditure -166.77-308.87-249.50-202.44-166.35-327.66-361.57-399-440.29-485.86
Capital Expenditure (%)
Free Cash Flow 242.19-177.46-42.7019.57457.13112.22123.84136.66150.80166.41

Weighted Average Cost Of Capital

Share price $ 204
Beta 0.555
Diluted Shares Outstanding 22.02
Cost of Debt
Tax Rate 23.69
After-tax Cost of Debt 6.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.469
Total Debt 28.31
Total Equity 4,492.28
Total Capital 4,520.60
Debt Weighting 0.63
Equity Weighting 99.37
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 3,342.233,2363,440.263,564.274,799.655,296.405,844.566,449.457,116.957,853.53
Operating Cash Flow 408.95131.41206.80222.01623.48439.89485.41535.65591.09652.27
Capital Expenditure -166.77-308.87-249.50-202.44-166.35-327.66-361.57-399-440.29-485.86
Free Cash Flow 242.19-177.46-42.7019.57457.13112.22123.84136.66150.80166.41
WACC
PV LFCF 106.39111.31116.44121.82127.44
SUM PV LFCF 583.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.48
Free cash flow (t + 1) 169.74
Terminal Value 4,877.45
Present Value of Terminal Value 3,735.44

Intrinsic Value

Enterprise Value 4,318.85
Net Debt -411.03
Equity Value 4,729.88
Shares Outstanding 22.02
Equity Value Per Share 214.79