Discounted Cash Flow (DCF) Analysis Levered

Vulcan Materials Company (VMC)

$206.64

+0.46 (+0.22%)
All numbers are in Millions, Currency in USD
Stock DCF: 199.65 | 206.64 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 4,929.104,856.835,552.207,315.208,402.839,652.1711,087.2712,735.7314,629.30
Revenue (%)
Operating Cash Flow 984.121,070.361,011.901,148.201,594.961,832.102,104.502,417.402,776.83
Operating Cash Flow (%)
Capital Expenditure -384.09-362.19-451.30-612.60-667.03-766.20-880.12-1,010.98-1,161.29
Capital Expenditure (%)
Free Cash Flow 600.03708.17560.60535.60927.941,065.901,224.381,406.431,615.54

Weighted Average Cost Of Capital

Share price $ 206.64
Beta 0.743
Diluted Shares Outstanding 133.60
Cost of Debt
Tax Rate 26.96
After-tax Cost of Debt 2.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.253
Total Debt 4,524.10
Total Equity 27,607.10
Total Capital 32,131.20
Debt Weighting 14.08
Equity Weighting 85.92
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 4,929.104,856.835,552.207,315.208,402.839,652.1711,087.2712,735.7314,629.30
Operating Cash Flow 984.121,070.361,011.901,148.201,594.961,832.102,104.502,417.402,776.83
Capital Expenditure -384.09-362.19-451.30-612.60-667.03-766.20-880.12-1,010.98-1,161.29
Free Cash Flow 600.03708.17560.60535.60927.941,065.901,224.381,406.431,615.54
WACC
PV LFCF 927.94999.821,077.261,160.711,250.62
SUM PV LFCF 5,080.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.61
Free cash flow (t + 1) 1,647.85
Terminal Value 35,745.05
Present Value of Terminal Value 25,955.31

Intrinsic Value

Enterprise Value 31,035.83
Net Debt 4,362.70
Equity Value 26,673.13
Shares Outstanding 133.60
Equity Value Per Share 199.65