Discounted Cash Flow (DCF) Analysis Levered

Stepan Company (SCL)

$93.67

-1.78 (-1.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 36.71 | 93.67 | 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 1,925.011,993.861,858.741,869.752,345.972,480.052,621.792,771.642,930.053,097.52
Revenue (%)
Operating Cash Flow 198.86171.13218.43235.2272.14229.75242.88256.76271.44286.95
Operating Cash Flow (%)
Capital Expenditure -78.61-86.65-105.57-125.79-388.96-185.59-196.20-207.41-219.27-231.80
Capital Expenditure (%)
Free Cash Flow 120.2584.48112.86109.42-316.8344.1646.6849.3552.1755.15

Weighted Average Cost Of Capital

Share price $ 93.67
Beta 0.756
Diluted Shares Outstanding 23.22
Cost of Debt
Tax Rate 20.13
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.374
Total Debt 322.86
Total Equity 2,174.92
Total Capital 2,497.79
Debt Weighting 12.93
Equity Weighting 87.07
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 1,925.011,993.861,858.741,869.752,345.972,480.052,621.792,771.642,930.053,097.52
Operating Cash Flow 198.86171.13218.43235.2272.14229.75242.88256.76271.44286.95
Capital Expenditure -78.61-86.65-105.57-125.79-388.96-185.59-196.20-207.41-219.27-231.80
Free Cash Flow 120.2584.48112.86109.42-316.8344.1646.6849.3552.1755.15
WACC
PV LFCF 41.2940.8240.3539.8939.43
SUM PV LFCF 201.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.94
Free cash flow (t + 1) 56.26
Terminal Value 1,138.77
Present Value of Terminal Value 814.21

Intrinsic Value

Enterprise Value 1,015.99
Net Debt 163.68
Equity Value 852.32
Shares Outstanding 23.22
Equity Value Per Share 36.71