Discounted Cash Flow (DCF) Analysis Levered

Skyline Champion Corporation (SKY)

$57.66

-6.86 (-10.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 60.22 | 57.66 | 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	1,064.72	1,360.04	1,369.73	1,420.88	2,207.23	2,690.20	3,278.86	3,996.32	4,870.77	5,936.57
Revenue (%)
Operating Cash Flow	31.62	65.23	76.74	153.90	224.48	184.93	225.39	274.71	334.82	408.08
Operating Cash Flow (%)
Capital Expenditure	-9.44	-12.09	-15.39	-8.02	-31.98	-26.43	-32.21	-39.26	-47.85	-58.33
Capital Expenditure (%)
Free Cash Flow	22.18	53.14	61.35	145.88	192.50	158.49	193.18	235.45	286.96	349.76

Weighted Average Cost Of Capital

Share price	$ 57.66
Beta	1.656
Diluted Shares Outstanding	57.31
Cost of Debt
Tax Rate	24.93
After-tax Cost of Debt	5.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.515
Total Debt	47.89
Total Equity	3,304.26
Total Capital	3,352.15
Debt Weighting	1.43
Equity Weighting	98.57
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	1,064.72	1,360.04	1,369.73	1,420.88	2,207.23	2,690.20	3,278.86	3,996.32	4,870.77	5,936.57
Operating Cash Flow	31.62	65.23	76.74	153.90	224.48	184.93	225.39	274.71	334.82	408.08
Capital Expenditure	-9.44	-12.09	-15.39	-8.02	-31.98	-26.43	-32.21	-39.26	-47.85	-58.33
Free Cash Flow	22.18	53.14	61.35	145.88	192.50	158.49	193.18	235.45	286.96	349.76
WACC
PV LFCF						142.25	155.61	170.22	186.20	203.68
SUM PV LFCF										857.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.42
Free cash flow (t + 1)	356.75
Terminal Value	3,787.17
Present Value of Terminal Value	2,205.46

Intrinsic Value

Enterprise Value	3,063.41
Net Debt	-387.52
Equity Value	3,450.93
Shares Outstanding	57.31
Equity Value Per Share	60.22