Discounted Cash Flow (DCF) Analysis Levered
Valvoline Inc. (VVV)
$32.62
+0.50 (+1.56%)
All numbers are in Millions, Currency in USD
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 | 2,285 | 2,390 | 2,353 | 2,981 | 1,236.10 | 1,147.11 | 1,064.52 | 987.88 | 916.76 | 850.76 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 320 | 325 | 372 | 404 | 284.20 | 183.44 | 170.23 | 157.98 | 146.60 | 136.05 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -93 | -108 | -151 | -144 | -132 | -70.01 | -64.97 | -60.29 | -55.95 | -51.92 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 227 | 217 | 221 | 260 | 152.20 | 113.43 | 105.26 | 97.68 | 90.65 | 84.12 |
Weighted Average Cost Of Capital
Share price | $ 32.62 |
---|---|
Beta | 1.348 |
Diluted Shares Outstanding | 180.40 |
Cost of Debt | |
Tax Rate | 24.08 |
After-tax Cost of Debt | 2.75% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 10.902 |
Total Debt | 1,916.80 |
Total Equity | 5,884.65 |
Total Capital | 7,801.45 |
Debt Weighting | 24.57 |
Equity Weighting | 75.43 |
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 | 2,285 | 2,390 | 2,353 | 2,981 | 1,236.10 | 1,147.11 | 1,064.52 | 987.88 | 916.76 | 850.76 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 320 | 325 | 372 | 404 | 284.20 | 183.44 | 170.23 | 157.98 | 146.60 | 136.05 |
Capital Expenditure | -93 | -108 | -151 | -144 | -132 | -70.01 | -64.97 | -60.29 | -55.95 | -51.92 |
Free Cash Flow | 227 | 217 | 221 | 260 | 152.20 | 113.43 | 105.26 | 97.68 | 90.65 | 84.12 |
WACC | ||||||||||
PV LFCF | 104.16 | 88.76 | 75.64 | 64.46 | 54.93 | |||||
SUM PV LFCF | 387.94 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.90 |
Free cash flow (t + 1) | 85.81 |
Terminal Value | 1,243.58 |
Present Value of Terminal Value | 811.96 |
Intrinsic Value
Enterprise Value | 1,199.90 |
---|---|
Net Debt | 1,893.40 |
Equity Value | -693.50 |
Shares Outstanding | 180.40 |
Equity Value Per Share | -3.84 |