Discounted Cash Flow (DCF) Analysis Levered

Valvoline Inc. (VVV)

$34.39

-0.04 (-0.12%)

All numbers are in Millions, Currency in USD

Stock DCF: -3.93 | 34.39 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,390	2,353	2,981	1,236.10	1,443.50	1,383.54	1,326.08	1,271	1,218.21	1,167.61
Revenue (%)
Operating Cash Flow	325	372	404	284.20	-40.80	174.67	167.42	160.47	153.80	147.41
Operating Cash Flow (%)
Capital Expenditure	-108	-151	-144	-132	-180.50	-107.78	-103.30	-99.01	-94.90	-90.96
Capital Expenditure (%)
Free Cash Flow	217	221	260	152.20	-221.30	66.90	64.12	61.45	58.90	56.46

Weighted Average Cost Of Capital

Share price	$ 34.39
Beta	1.365
Diluted Shares Outstanding	162.60
Cost of Debt
Tax Rate	15.69
After-tax Cost of Debt	3.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.662
Total Debt	1,833.40
Total Equity	5,591.81
Total Capital	7,425.21
Debt Weighting	24.69
Equity Weighting	75.31
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,390	2,353	2,981	1,236.10	1,443.50	1,383.54	1,326.08	1,271	1,218.21	1,167.61
Operating Cash Flow	325	372	404	284.20	-40.80	174.67	167.42	160.47	153.80	147.41
Capital Expenditure	-108	-151	-144	-132	-180.50	-107.78	-103.30	-99.01	-94.90	-90.96
Free Cash Flow	217	221	260	152.20	-221.30	66.90	64.12	61.45	58.90	56.46
WACC
PV LFCF						61.42	54.06	47.57	41.87	36.84
SUM PV LFCF										241.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.91
Free cash flow (t + 1)	57.58
Terminal Value	833.35
Present Value of Terminal Value	543.86

Intrinsic Value

Enterprise Value	785.63
Net Debt	1,424.30
Equity Value	-638.67
Shares Outstanding	162.60
Equity Value Per Share	-3.93