Discounted Cash Flow (DCF) Analysis Levered

Sally Beauty Holdings, Inc. (SBH)

$17.14

-0.49 (-2.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 25.12 | 17.14 | undervalue

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 3,932.573,876.413,514.333,8753,815.563,796.113,776.753,757.503,738.343,719.28
Revenue (%)
Operating Cash Flow 372.66320.41426.89381.86156.50332.88331.19329.50327.82326.15
Operating Cash Flow (%)
Capital Expenditure -86.51-107.75-110.86-73.90-99.25-95.98-95.49-95.01-94.52-94.04
Capital Expenditure (%)
Free Cash Flow 286.15212.66316.03307.9657.25236.90235.69234.49233.29232.10

Weighted Average Cost Of Capital

Share price $ 17.14
Beta 1.246
Diluted Shares Outstanding 110.29
Cost of Debt
Tax Rate 24.80
After-tax Cost of Debt 4.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.498
Total Debt 1,734.20
Total Equity 1,890.42
Total Capital 3,624.62
Debt Weighting 47.84
Equity Weighting 52.16
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 3,932.573,876.413,514.333,8753,815.563,796.113,776.753,757.503,738.343,719.28
Operating Cash Flow 372.66320.41426.89381.86156.50332.88331.19329.50327.82326.15
Capital Expenditure -86.51-107.75-110.86-73.90-99.25-95.98-95.49-95.01-94.52-94.04
Free Cash Flow 286.15212.66316.03307.9657.25236.90235.69234.49233.29232.10
WACC
PV LFCF 158.83147.84137.60128.08119.21
SUM PV LFCF 964.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.89
Free cash flow (t + 1) 236.75
Terminal Value 4,841.44
Present Value of Terminal Value 3,469.68

Intrinsic Value

Enterprise Value 4,434.65
Net Debt 1,663.64
Equity Value 2,771.01
Shares Outstanding 110.29
Equity Value Per Share 25.12