Discounted Cash Flow (DCF) Analysis Levered

Universal Corporation (UVV)

$56.22

-1.17 (-2.04%)
All numbers are in Millions, Currency in USD
Stock DCF: 49.48 | 56.22 | 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 2,033.952,227.151,909.981,983.362,103.602,130.752,158.252,186.102,214.322,242.89
Revenue (%)
Operating Cash Flow 83.24164.5210.90220.4144.88107.80109.20110.60112.03113.48
Operating Cash Flow (%)
Capital Expenditure -34.04-38.76-35.23-66.15-53.20-47.40-48.01-48.63-49.26-49.89
Capital Expenditure (%)
Free Cash Flow 49.21125.76-24.33154.26-8.3260.4061.1861.9762.7763.58

Weighted Average Cost Of Capital

Share price $ 56.22
Beta 0.647
Diluted Shares Outstanding 24.92
Cost of Debt
Tax Rate 39.14
After-tax Cost of Debt 2.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.605
Total Debt 741.11
Total Equity 1,401.17
Total Capital 2,142.27
Debt Weighting 34.59
Equity Weighting 65.41
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 2,033.952,227.151,909.981,983.362,103.602,130.752,158.252,186.102,214.322,242.89
Operating Cash Flow 83.24164.5210.90220.4144.88107.80109.20110.60112.03113.48
Capital Expenditure -34.04-38.76-35.23-66.15-53.20-47.40-48.01-48.63-49.26-49.89
Free Cash Flow 49.21125.76-24.33154.26-8.3260.4061.1861.9762.7763.58
WACC
PV LFCF 57.4755.3853.3751.4349.56
SUM PV LFCF 267.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.11
Free cash flow (t + 1) 64.86
Terminal Value 2,085.37
Present Value of Terminal Value 1,625.41

Intrinsic Value

Enterprise Value 1,892.61
Net Debt 659.46
Equity Value 1,233.16
Shares Outstanding 24.92
Equity Value Per Share 49.48