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 487.01385.30485.29452.27492.95501.89511520.27529.71539.32
Revenue (%)
Operating Cash Flow 29.9425.4235.1510.4410.1024.4424.8825.3325.7926.26
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 12.4913.0426.22-3.75-7.289.089.259.419.589.76

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 487.01385.30485.29452.27492.95501.89511520.27529.71539.32
Operating Cash Flow 29.9425.4235.1510.4410.1024.4424.8825.3325.7926.26
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 12.4913.0426.22-3.75-7.289.089.259.419.589.76
WACC
PV LFCF 8.287.697.146.636.15
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