Discounted Cash Flow (DCF) Analysis Levered

Strattec Security Corporation (STRT)

$19.1

-0.01 (-0.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.58 | 19.1 | 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 439.19487.01385.30485.29452.27462.61473.19484.01495.08506.40
Revenue (%)
Operating Cash Flow 6.9429.9425.4235.1510.4422.0922.6023.1123.6424.18
Operating Cash Flow (%)
Capital Expenditure -24.13-17.45-12.38-8.93-14.19-15.98-16.34-16.72-17.10-17.49
Capital Expenditure (%)
Free Cash Flow -17.1912.4913.0426.22-3.756.116.256.406.546.69

Weighted Average Cost Of Capital

Share price $ 19.1
Beta 1.206
Diluted Shares Outstanding 3.85
Cost of Debt
Tax Rate 24.22
After-tax Cost of Debt 1.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.391
Total Debt 11
Total Equity 73.57
Total Capital 84.57
Debt Weighting 13.01
Equity Weighting 86.99
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 439.19487.01385.30485.29452.27462.61473.19484.01495.08506.40
Operating Cash Flow 6.9429.9425.4235.1510.4422.0922.6023.1123.6424.18
Capital Expenditure -24.13-17.45-12.38-8.93-14.19-15.98-16.34-16.72-17.10-17.49
Free Cash Flow -17.1912.4913.0426.22-3.756.116.256.406.546.69
WACC
PV LFCF 5.645.325.034.744.48
SUM PV LFCF 25.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.37
Free cash flow (t + 1) 6.83
Terminal Value 107.17
Present Value of Terminal Value 71.70

Intrinsic Value

Enterprise Value 96.91
Net Debt 2.23
Equity Value 94.69
Shares Outstanding 3.85
Equity Value Per Share 24.58