Discounted Cash Flow (DCF) Analysis Levered

Strattec Security Corporation (STRT)

$18.9694

+0.46 (+2.48%)

All numbers are in Millions, Currency in USD

Stock DCF: 24.82 | 18.9694 | 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	439.19	487.01	385.30	485.29	452.27	462.61	473.19	484.01	495.08	506.40
Revenue (%)
Operating Cash Flow	6.94	29.94	25.42	35.15	10.44	22.09	22.60	23.11	23.64	24.18
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	-17.19	12.49	13.04	26.22	-3.75	6.11	6.25	6.40	6.54	6.69

Weighted Average Cost Of Capital

Share price	$ 18.9,694
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	9.329
Total Debt	11
Total Equity	73.07
Total Capital	84.07
Debt Weighting	13.08
Equity Weighting	86.92
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	439.19	487.01	385.30	485.29	452.27	462.61	473.19	484.01	495.08	506.40
Operating Cash Flow	6.94	29.94	25.42	35.15	10.44	22.09	22.60	23.11	23.64	24.18
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	-17.19	12.49	13.04	26.22	-3.75	6.11	6.25	6.40	6.54	6.69
WACC
PV LFCF						5.64	5.33	5.03	4.75	4.49
SUM PV LFCF										25.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.31
Free cash flow (t + 1)	6.83
Terminal Value	108.19
Present Value of Terminal Value	72.58

Intrinsic Value

Enterprise Value	97.84
Net Debt	2.23
Equity Value	95.61
Shares Outstanding	3.85
Equity Value Per Share	24.82