Discounted Cash Flow (DCF) Analysis Levered
The Wendy's Company (WEN)
$21.82
+0.33 (+1.54%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,589.94 | 1,709 | 1,836.98 | 1,974.55 | 2,122.42 | 2,281.36 | 2,452.21 | 2,635.85 | 2,833.24 | 3,045.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 224.23 | 288.93 | 284.82 | 306.15 | 329.08 | 353.72 | 380.21 | 408.68 | 439.29 | 472.18 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -69.86 | -74.45 | -80.37 | -86.39 | -92.86 | -99.81 | -107.29 | -115.32 | -123.96 | -133.24 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 154.37 | 214.48 | 204.45 | 219.76 | 236.22 | 253.91 | 272.92 | 293.36 | 315.33 | 338.94 |
Weighted Average Cost Of Capital
| Share price | $ 21.82 |
|---|---|
| Beta | 0.916 |
| Diluted Shares Outstanding | 224.41 |
| Cost of Debt | |
| Tax Rate | 16.70 |
| After-tax Cost of Debt | 2.36% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.873 |
| Total Debt | 3,856.41 |
| Total Equity | 4,896.52 |
| Total Capital | 8,752.93 |
| Debt Weighting | 44.06 |
| Equity Weighting | 55.94 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,589.94 | 1,709 | 1,836.98 | 1,974.55 | 2,122.42 | 2,281.36 | 2,452.21 | 2,635.85 | 2,833.24 | 3,045.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 224.23 | 288.93 | 284.82 | 306.15 | 329.08 | 353.72 | 380.21 | 408.68 | 439.29 | 472.18 |
| Capital Expenditure | -69.86 | -74.45 | -80.37 | -86.39 | -92.86 | -99.81 | -107.29 | -115.32 | -123.96 | -133.24 |
| Free Cash Flow | 154.37 | 214.48 | 204.45 | 219.76 | 236.22 | 253.91 | 272.92 | 293.36 | 315.33 | 338.94 |
| WACC | ||||||||||
| PV LFCF | 227.30 | 231.72 | 236.22 | 240.81 | 245.49 | 250.26 | 255.12 | 260.08 | ||
| SUM PV LFCF | 1,251.74 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.44 |
| Free cash flow (t + 1) | 345.72 |
| Terminal Value | 10,050.06 |
| Present Value of Terminal Value | 7,711.55 |
Intrinsic Value
| Enterprise Value | 8,963.30 |
|---|---|
| Net Debt | 3,606.97 |
| Equity Value | 5,356.32 |
| Shares Outstanding | 224.41 |
| Equity Value Per Share | 23.87 |