Discounted Cash Flow (DCF) Analysis Levered

TreeHouse Foods, Inc. (THS)

$42.68

-0.82 (-1.89%)

All numbers are in Millions, Currency in USD

Stock DCF: 163.16 | 42.68 | undervalue

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	6,307.10	5,812.10	4,288.90	4,349	4,327.60	3,968.99	3,640.09	3,338.45	3,061.81	2,808.09
Revenue (%)
Operating Cash Flow	506	505.80	307.70	403	324.90	322.87	296.11	271.57	249.07	228.43
Operating Cash Flow (%)
Capital Expenditure	-185.80	-196.20	-146.80	-90	-115.90	-115.04	-105.50	-96.76	-88.74	-81.39
Capital Expenditure (%)
Free Cash Flow	320.20	309.60	160.90	313	209	207.83	190.61	174.81	160.33	147.04

Weighted Average Cost Of Capital

Share price	$ 42.68
Beta	0.400
Diluted Shares Outstanding	56.70
Cost of Debt
Tax Rate	60.32
After-tax Cost of Debt	1.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.727
Total Debt	2,088.10
Total Equity	2,419.96
Total Capital	4,508.06
Debt Weighting	46.32
Equity Weighting	53.68
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	6,307.10	5,812.10	4,288.90	4,349	4,327.60	3,968.99	3,640.09	3,338.45	3,061.81	2,808.09
Operating Cash Flow	506	505.80	307.70	403	324.90	322.87	296.11	271.57	249.07	228.43
Capital Expenditure	-185.80	-196.20	-146.80	-90	-115.90	-115.04	-105.50	-96.76	-88.74	-81.39
Free Cash Flow	320.20	309.60	160.90	313	209	207.83	190.61	174.81	160.33	147.04
WACC
PV LFCF						201.29	178.80	158.82	141.07	125.31
SUM PV LFCF										805.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.25
Free cash flow (t + 1)	149.98
Terminal Value	11,998.55
Present Value of Terminal Value	10,225.36

Intrinsic Value

Enterprise Value	11,030.64
Net Debt	1,779.50
Equity Value	9,251.14
Shares Outstanding	56.70
Equity Value Per Share	163.16