Discounted Cash Flow (DCF) Analysis Levered

Gentherm Incorporated (THRM)

$72

+1.00 (+1.41%)

All numbers are in Millions, Currency in USD

Stock DCF: 34.45 | 72 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	985.68	1,038.26	971.68	913.10	1,046.15	1,065.67	1,085.56	1,105.81	1,126.45	1,147.47
Revenue (%)
Operating Cash Flow	49.88	118.43	118.80	110.69	143.08	116.14	118.31	120.52	122.77	125.06
Operating Cash Flow (%)
Capital Expenditure	-50.79	-41.54	-23.73	-20.36	-46.03	-38.84	-39.57	-40.31	-41.06	-41.82
Capital Expenditure (%)
Free Cash Flow	-0.91	76.89	95.07	90.33	97.05	77.30	78.74	80.21	81.71	83.23

Weighted Average Cost Of Capital

Share price	$ 72
Beta	1.326
Diluted Shares Outstanding	33.03
Cost of Debt
Tax Rate	17.93
After-tax Cost of Debt	3.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.779
Total Debt	64.21
Total Equity	2,378.02
Total Capital	2,442.22
Debt Weighting	2.63
Equity Weighting	97.37
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	985.68	1,038.26	971.68	913.10	1,046.15	1,065.67	1,085.56	1,105.81	1,126.45	1,147.47
Operating Cash Flow	49.88	118.43	118.80	110.69	143.08	116.14	118.31	120.52	122.77	125.06
Capital Expenditure	-50.79	-41.54	-23.73	-20.36	-46.03	-38.84	-39.57	-40.31	-41.06	-41.82
Free Cash Flow	-0.91	76.89	95.07	90.33	97.05	77.30	78.74	80.21	81.71	83.23
WACC
PV LFCF						70.52	65.54	60.91	56.61	52.61
SUM PV LFCF										306.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.61
Free cash flow (t + 1)	84.90
Terminal Value	1,115.63
Present Value of Terminal Value	705.13

Intrinsic Value

Enterprise Value	1,011.32
Net Debt	-126.40
Equity Value	1,137.72
Shares Outstanding	33.03
Equity Value Per Share	34.45