Discounted Cash Flow (DCF) Analysis Levered

Star Group, L.P. (SGU)

$12.97

-0.10 (-0.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 111.22 | 12.97 | 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	1,677.84	1,753.87	1,467.46	1,497.09	2,006.56	2,128.21	2,257.24	2,394.09	2,539.24	2,693.19
Revenue (%)
Operating Cash Flow	57.46	97.38	175.67	68.88	33.91	115.94	122.97	130.42	138.33	146.72
Operating Cash Flow (%)
Capital Expenditure	-13.59	-11.30	-14.13	-15.08	-18.70	-18.54	-19.67	-20.86	-22.12	-23.47
Capital Expenditure (%)
Free Cash Flow	43.87	86.08	161.54	53.79	15.21	97.40	103.30	109.56	116.21	123.25

Weighted Average Cost Of Capital

Share price	$ 12.97
Beta	0.457
Diluted Shares Outstanding	37.38
Cost of Debt
Tax Rate	28.02
After-tax Cost of Debt	2.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.653
Total Debt	282.96
Total Equity	484.87
Total Capital	767.83
Debt Weighting	36.85
Equity Weighting	63.15
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	1,677.84	1,753.87	1,467.46	1,497.09	2,006.56	2,128.21	2,257.24	2,394.09	2,539.24	2,693.19
Operating Cash Flow	57.46	97.38	175.67	68.88	33.91	115.94	122.97	130.42	138.33	146.72
Capital Expenditure	-13.59	-11.30	-14.13	-15.08	-18.70	-18.54	-19.67	-20.86	-22.12	-23.47
Free Cash Flow	43.87	86.08	161.54	53.79	15.21	97.40	103.30	109.56	116.21	123.25
WACC
PV LFCF						93.16	94.50	95.87	97.26	98.67
SUM PV LFCF										479.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.55
Free cash flow (t + 1)	125.72
Terminal Value	4,930.05
Present Value of Terminal Value	3,946.68

Intrinsic Value

Enterprise Value	4,426.14
Net Debt	268.34
Equity Value	4,157.80
Shares Outstanding	37.38
Equity Value Per Share	111.22