Discounted Cash Flow (DCF) Analysis Levered

US Foods Holding Corp. (USFD)

$40.13

+0.44 (+1.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 18.93 | 40.13 | overvalue

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	24,175	25,939	22,885	29,487	34,057	37,451.63	41,184.62	45,289.69	49,803.93	54,768.14
Revenue (%)
Operating Cash Flow	609	760	413	419	765	818.02	899.55	989.21	1,087.81	1,196.24
Operating Cash Flow (%)
Capital Expenditure	-235	-258	-189	-274	-265	-337.06	-370.65	-407.60	-448.23	-492.90
Capital Expenditure (%)
Free Cash Flow	374	502	224	145	500	480.96	528.90	581.61	639.59	703.34

Weighted Average Cost Of Capital

Share price	$ 40.13
Beta	1.506
Diluted Shares Outstanding	226
Cost of Debt
Tax Rate	26.59
After-tax Cost of Debt	3.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.706
Total Debt	5,029
Total Equity	9,069.38
Total Capital	14,098.38
Debt Weighting	35.67
Equity Weighting	64.33
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	24,175	25,939	22,885	29,487	34,057	37,451.63	41,184.62	45,289.69	49,803.93	54,768.14
Operating Cash Flow	609	760	413	419	765	818.02	899.55	989.21	1,087.81	1,196.24
Capital Expenditure	-235	-258	-189	-274	-265	-337.06	-370.65	-407.60	-448.23	-492.90
Free Cash Flow	374	502	224	145	500	480.96	528.90	581.61	639.59	703.34
WACC
PV LFCF						441.81	446.31	450.85	455.43	460.07
SUM PV LFCF										2,254.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.86
Free cash flow (t + 1)	717.40
Terminal Value	10,457.77
Present Value of Terminal Value	6,840.65

Intrinsic Value

Enterprise Value	9,095.12
Net Debt	4,818
Equity Value	4,277.12
Shares Outstanding	226
Equity Value Per Share	18.93