Discounted Cash Flow (DCF) Analysis Levered

Tredegar Corporation (TG)

$5.41

+0.20 (+3.84%)

All numbers are in Millions, Currency in USD

Stock DCF: 16.43 | 5.41 | 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	1,065.47	972.36	755.29	826.45	938.56	919.61	901.05	882.86	865.03	847.57
Revenue (%)
Operating Cash Flow	97.79	115.86	74.37	70.58	-20.84	68.53	67.15	65.79	64.46	63.16
Operating Cash Flow (%)
Capital Expenditure	-40.81	-50.86	-23.36	-27.36	-36.87	-35.67	-34.95	-34.24	-33.55	-32.87
Capital Expenditure (%)
Free Cash Flow	56.98	65	51.02	43.22	-57.72	32.86	32.20	31.55	30.91	30.29

Weighted Average Cost Of Capital

Share price	$ 5.41
Beta	0.904
Diluted Shares Outstanding	33.83
Cost of Debt
Tax Rate	13.17
After-tax Cost of Debt	2.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.841
Total Debt	151.77
Total Equity	183
Total Capital	334.77
Debt Weighting	45.34
Equity Weighting	54.66
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	1,065.47	972.36	755.29	826.45	938.56	919.61	901.05	882.86	865.03	847.57
Operating Cash Flow	97.79	115.86	74.37	70.58	-20.84	68.53	67.15	65.79	64.46	63.16
Capital Expenditure	-40.81	-50.86	-23.36	-27.36	-36.87	-35.67	-34.95	-34.24	-33.55	-32.87
Free Cash Flow	56.98	65	51.02	43.22	-57.72	32.86	32.20	31.55	30.91	30.29
WACC
PV LFCF						30.96	28.59	26.39	24.37	22.49
SUM PV LFCF										132.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.13
Free cash flow (t + 1)	30.89
Terminal Value	748.02
Present Value of Terminal Value	555.55

Intrinsic Value

Enterprise Value	688.35
Net Debt	132.54
Equity Value	555.81
Shares Outstanding	33.83
Equity Value Per Share	16.43