Discounted Cash Flow (DCF) Analysis Levered

Smith & Wesson Brands, Inc. (SWBI)

$10.17

-0.20 (-1.93%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.01 | 10.17 | 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 606.85638.28678.391,059.20864.13970.371,089.681,223.651,374.101,543.05
Revenue (%)
Operating Cash Flow 61.6457.4594.96315.33137.81153.08171.90193.03216.77243.42
Operating Cash Flow (%)
Capital Expenditure -19.05-34.46-14.74-22.68-24.25-30.39-34.13-38.33-43.04-48.33
Capital Expenditure (%)
Free Cash Flow 42.5922.9880.22292.65113.56122.68137.77154.71173.73195.09

Weighted Average Cost Of Capital

Share price $ 10.17
Beta 0.832
Diluted Shares Outstanding 47.73
Cost of Debt
Tax Rate 22.94
After-tax Cost of Debt 4.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.577
Total Debt 40.28
Total Equity 485.39
Total Capital 525.67
Debt Weighting 7.66
Equity Weighting 92.34
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 606.85638.28678.391,059.20864.13970.371,089.681,223.651,374.101,543.05
Operating Cash Flow 61.6457.4594.96315.33137.81153.08171.90193.03216.77243.42
Capital Expenditure -19.05-34.46-14.74-22.68-24.25-30.39-34.13-38.33-43.04-48.33
Free Cash Flow 42.5922.9880.22292.65113.56122.68137.77154.71173.73195.09
WACC
PV LFCF 114.33119.64125.20131.01137.10
SUM PV LFCF 627.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.31
Free cash flow (t + 1) 198.99
Terminal Value 3,747.47
Present Value of Terminal Value 2,633.53

Intrinsic Value

Enterprise Value 3,260.80
Net Debt -80.45
Equity Value 3,341.24
Shares Outstanding 47.73
Equity Value Per Share 70.01