Discounted Cash Flow (DCF) Analysis Levered

Winmark Corporation (WINA)

$345.9

-3.47 (-0.99%)

All numbers are in Millions, Currency in USD

Stock DCF: 217.07 | 345.9 | overvalue

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	72.51	73.30	66.06	78.22	81.41	84.20	87.08	90.06	93.15	96.34
Revenue (%)
Operating Cash Flow	34.94	50.65	43.22	48.35	43.79	50.23	51.95	53.73	55.57	57.47
Operating Cash Flow (%)
Capital Expenditure	-23.80	-9.18	-4.16	-0.28	-0.14	-8.79	-9.09	-9.40	-9.72	-10.05
Capital Expenditure (%)
Free Cash Flow	11.14	41.47	39.06	48.06	43.65	41.45	42.87	44.33	45.85	47.42

Weighted Average Cost Of Capital

Share price	$ 345.9
Beta	0.790
Diluted Shares Outstanding	3.59
Cost of Debt
Tax Rate	22.37
After-tax Cost of Debt	2.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.420
Total Debt	77.57
Total Equity	1,242.63
Total Capital	1,320.20
Debt Weighting	5.88
Equity Weighting	94.12
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	72.51	73.30	66.06	78.22	81.41	84.20	87.08	90.06	93.15	96.34
Operating Cash Flow	34.94	50.65	43.22	48.35	43.79	50.23	51.95	53.73	55.57	57.47
Capital Expenditure	-23.80	-9.18	-4.16	-0.28	-0.14	-8.79	-9.09	-9.40	-9.72	-10.05
Free Cash Flow	11.14	41.47	39.06	48.06	43.65	41.45	42.87	44.33	45.85	47.42
WACC
PV LFCF						38.68	37.33	36.03	34.77	33.56
SUM PV LFCF										180.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.16
Free cash flow (t + 1)	48.37
Terminal Value	937.43
Present Value of Terminal Value	663.40

Intrinsic Value

Enterprise Value	843.77
Net Debt	63.96
Equity Value	779.81
Shares Outstanding	3.59
Equity Value Per Share	217.07