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
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 | 3,932.57 | 3,876.41 | 3,514.33 | 3,875 | 3,815.56 | 3,796.11 | 3,776.75 | 3,757.50 | 3,738.34 | 3,719.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 372.66 | 320.41 | 426.89 | 381.86 | 156.50 | 332.88 | 331.19 | 329.50 | 327.82 | 326.15 |
| 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 | 286.15 | 212.66 | 316.03 | 307.96 | 57.25 | 236.90 | 235.69 | 234.49 | 233.29 | 232.10 |
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 | 3,932.57 | 3,876.41 | 3,514.33 | 3,875 | 3,815.56 | 3,796.11 | 3,776.75 | 3,757.50 | 3,738.34 | 3,719.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 372.66 | 320.41 | 426.89 | 381.86 | 156.50 | 332.88 | 331.19 | 329.50 | 327.82 | 326.15 |
| 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 | 286.15 | 212.66 | 316.03 | 307.96 | 57.25 | 236.90 | 235.69 | 234.49 | 233.29 | 232.10 |
| WACC | ||||||||||
| PV LFCF | 158.83 | 147.84 | 137.60 | 128.08 | 119.21 | |||||
| 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 |