Discounted Cash Flow (DCF) Analysis Levered

U.S. Physical Therapy, Inc. (USPH)

$85.03

-0.11 (-0.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 77.83 | 85.03 | 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	453.91	481.97	422.97	495.02	553.14	584.56	617.75	652.84	689.91	729.09
Revenue (%)
Operating Cash Flow	73	62.45	99.99	76.41	58.54	92.01	97.23	102.76	108.59	114.76
Operating Cash Flow (%)
Capital Expenditure	-7.19	-10.19	-7.64	-8.20	-8.25	-10.12	-10.69	-11.30	-11.94	-12.62
Capital Expenditure (%)
Free Cash Flow	65.81	52.26	92.36	68.20	50.29	81.89	86.54	91.46	96.65	102.14

Weighted Average Cost Of Capital

Share price	$ 85.03
Beta	1.384
Diluted Shares Outstanding	12.98
Cost of Debt
Tax Rate	21.89
After-tax Cost of Debt	3.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.830
Total Debt	295.34
Total Equity	1,104.11
Total Capital	1,399.45
Debt Weighting	21.10
Equity Weighting	78.90
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	453.91	481.97	422.97	495.02	553.14	584.56	617.75	652.84	689.91	729.09
Operating Cash Flow	73	62.45	99.99	76.41	58.54	92.01	97.23	102.76	108.59	114.76
Capital Expenditure	-7.19	-10.19	-7.64	-8.20	-8.25	-10.12	-10.69	-11.30	-11.94	-12.62
Free Cash Flow	65.81	52.26	92.36	68.20	50.29	81.89	86.54	91.46	96.65	102.14
WACC
PV LFCF						74.96	72.51	70.14	67.85	65.63
SUM PV LFCF										351.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.25
Free cash flow (t + 1)	104.18
Terminal Value	1,437.02
Present Value of Terminal Value	923.33

Intrinsic Value

Enterprise Value	1,274.41
Net Debt	263.74
Equity Value	1,010.66
Shares Outstanding	12.98
Equity Value Per Share	77.83