Discounted Cash Flow (DCF) Analysis Levered
Sterling Infrastructure, Inc. (STRL)
$71.66
-0.29 (-0.40%)
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 | 1,037.67 | 1,126.28 | 1,427.41 | 1,581.77 | 1,769.44 | 2,025.80 | 2,319.32 | 2,655.35 | 3,040.08 | 3,480.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 39.47 | 41.09 | 119.28 | 151.59 | 219.12 | 153.06 | 175.23 | 200.62 | 229.69 | 262.97 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -13.17 | -15.40 | -32.86 | -46.65 | -60.91 | -45.91 | -52.56 | -60.17 | -68.89 | -78.87 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 26.30 | 25.70 | 86.42 | 104.94 | 158.21 | 107.15 | 122.67 | 140.45 | 160.80 | 184.09 |
Weighted Average Cost Of Capital
| Share price | $ 71.66 |
|---|---|
| Beta | 1.309 |
| Diluted Shares Outstanding | 30.56 |
| Cost of Debt | |
| Tax Rate | 24.05 |
| After-tax Cost of Debt | 3.18% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.615 |
| Total Debt | 491.16 |
| Total Equity | 2,190.22 |
| Total Capital | 2,681.38 |
| Debt Weighting | 18.32 |
| Equity Weighting | 81.68 |
| 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 | 1,037.67 | 1,126.28 | 1,427.41 | 1,581.77 | 1,769.44 | 2,025.80 | 2,319.32 | 2,655.35 | 3,040.08 | 3,480.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 39.47 | 41.09 | 119.28 | 151.59 | 219.12 | 153.06 | 175.23 | 200.62 | 229.69 | 262.97 |
| Capital Expenditure | -13.17 | -15.40 | -32.86 | -46.65 | -60.91 | -45.91 | -52.56 | -60.17 | -68.89 | -78.87 |
| Free Cash Flow | 26.30 | 25.70 | 86.42 | 104.94 | 158.21 | 107.15 | 122.67 | 140.45 | 160.80 | 184.09 |
| WACC | ||||||||||
| PV LFCF | 98.08 | 102.78 | 107.71 | 112.87 | 118.29 | |||||
| SUM PV LFCF | 539.73 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.25 |
| Free cash flow (t + 1) | 187.78 |
| Terminal Value | 2,590.02 |
| Present Value of Terminal Value | 1,664.16 |
Intrinsic Value
| Enterprise Value | 2,203.89 |
|---|---|
| Net Debt | 309.62 |
| Equity Value | 1,894.27 |
| Shares Outstanding | 30.56 |
| Equity Value Per Share | 61.98 |