Discounted Cash Flow (DCF) Analysis Levered

Strattec Security Corporation (STRT)

$22.85

+0.05 (+0.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 31.94 | 22.85 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	487.01	385.30	485.29	452.27	492.95	501.89	511	520.27	529.71	539.32
Revenue (%)
Operating Cash Flow	29.94	25.42	35.15	10.44	10.10	24.44	24.88	25.33	25.79	26.26
Operating Cash Flow (%)
Capital Expenditure	-17.45	-12.38	-8.93	-14.19	-17.37	-15.36	-15.63	-15.92	-16.21	-16.50
Capital Expenditure (%)
Free Cash Flow	12.49	13.04	26.22	-3.75	-7.28	9.08	9.25	9.41	9.58	9.76

Weighted Average Cost Of Capital

Share price	$ 22.85
Beta	1.175
Diluted Shares Outstanding	3.92
Cost of Debt
Tax Rate	13.02
After-tax Cost of Debt	6.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.141
Total Debt	13
Total Equity	89.59
Total Capital	102.59
Debt Weighting	12.67
Equity Weighting	87.33
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	487.01	385.30	485.29	452.27	492.95	501.89	511	520.27	529.71	539.32
Operating Cash Flow	29.94	25.42	35.15	10.44	10.10	24.44	24.88	25.33	25.79	26.26
Capital Expenditure	-17.45	-12.38	-8.93	-14.19	-17.37	-15.36	-15.63	-15.92	-16.21	-16.50
Free Cash Flow	12.49	13.04	26.22	-3.75	-7.28	9.08	9.25	9.41	9.58	9.76
WACC
PV LFCF						8.28	7.69	7.14	6.63	6.15
SUM PV LFCF										35.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.67
Free cash flow (t + 1)	9.95
Terminal Value	129.77
Present Value of Terminal Value	81.80

Intrinsic Value

Enterprise Value	117.68
Net Debt	-7.57
Equity Value	125.25
Shares Outstanding	3.92
Equity Value Per Share	31.94