Discounted Cash Flow (DCF) Analysis Levered

Valvoline Inc. (VVV)

$33.51

+0.75 (+2.30%)
Financial Summary
Financial Statements
Quarter Financials
Chart
Financial Ratios
Profile
Historical Data
DCFDCF Levered
All numbers are in Millions, Currency in USD
Stock DCF: 12.50 | 33.51 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,0842,2852,3902,3532,9813,274.493,596.873,9514,339.994,767.27
Revenue (%)
Operating Cash Flow -130320325372404332.21364.92400.84440.31483.66
Operating Cash Flow (%)
Capital Expenditure -68-93-108-151-144-151.28-166.17-182.53-200.51-220.25
Capital Expenditure (%)
Free Cash Flow -198227217221260180.93198.74218.31239.80263.41

Weighted Average Cost Of Capital

Share price $ 33.51
Beta 1.315
Diluted Shares Outstanding 183
Cost of Debt
Tax Rate 22.65
After-tax Cost of Debt 4.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.951
Total Debt 1,968
Total Equity 6,132.33
Total Capital 8,100.33
Debt Weighting 24.30
Equity Weighting 75.70
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,0842,2852,3902,3532,9813,274.493,596.873,9514,339.994,767.27
Operating Cash Flow -130320325372404332.21364.92400.84440.31483.66
Capital Expenditure -68-93-108-151-144-151.28-166.17-182.53-200.51-220.25
Free Cash Flow -198227217221260180.93198.74218.31239.80263.41
WACC
PV LFCF 167.78170.90174.07177.31180.61
SUM PV LFCF 870.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.84
Free cash flow (t + 1) 268.68
Terminal Value 4,600.68
Present Value of Terminal Value 3,154.44

Intrinsic Value

Enterprise Value 4,025.10
Net Debt 1,738
Equity Value 2,287.10
Shares Outstanding 183
Equity Value Per Share 12.50