Discounted Cash Flow (DCF) Analysis Levered

Sterling Infrastructure, Inc. (STRL)

$20.83

-0.15 (-0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 58.85 | 20.83 | undervalue

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 957.961,037.671,126.281,427.411,581.771,796.932,041.362,319.042,634.492,992.85
Revenue (%)
Operating Cash Flow 23.0139.4741.09119.28151.5999.89113.48128.92146.45166.37
Operating Cash Flow (%)
Capital Expenditure -9.42-13.17-15.40-32.86-46.65-31.88-36.22-41.15-46.74-53.10
Capital Expenditure (%)
Free Cash Flow 13.5926.3025.7086.42104.9468.0177.2687.7799.71113.27

Weighted Average Cost Of Capital

Share price $ 20.83
Beta 1.258
Diluted Shares Outstanding 29.10
Cost of Debt
Tax Rate 30.41
After-tax Cost of Debt 2.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.902
Total Debt 481.49
Total Equity 606.17
Total Capital 1,087.66
Debt Weighting 44.27
Equity Weighting 55.73
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 957.961,037.671,126.281,427.411,581.771,796.932,041.362,319.042,634.492,992.85
Operating Cash Flow 23.0139.4741.09119.28151.5999.89113.48128.92146.45166.37
Capital Expenditure -9.42-13.17-15.40-32.86-46.65-31.88-36.22-41.15-46.74-53.10
Free Cash Flow 13.5926.3025.7086.42104.9468.0177.2687.7799.71113.27
WACC
PV LFCF 55.8959.4763.2867.3471.66
SUM PV LFCF 362.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.76
Free cash flow (t + 1) 115.54
Terminal Value 2,427.24
Present Value of Terminal Value 1,750.13

Intrinsic Value

Enterprise Value 2,112.18
Net Debt 399.65
Equity Value 1,712.53
Shares Outstanding 29.10
Equity Value Per Share 58.85