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 24,17525,93922,88529,48734,05737,451.6341,184.6245,289.6949,803.9354,768.14
Revenue (%)
Operating Cash Flow 609760413419765818.02899.55989.211,087.811,196.24
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 374502224145500480.96528.90581.61639.59703.34

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 24,17525,93922,88529,48734,05737,451.6341,184.6245,289.6949,803.9354,768.14
Operating Cash Flow 609760413419765818.02899.55989.211,087.811,196.24
Capital Expenditure -235-258-189-274-265-337.06-370.65-407.60-448.23-492.90
Free Cash Flow 374502224145500480.96528.90581.61639.59703.34
WACC
PV LFCF 441.81446.31450.85455.43460.07
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