Discounted Cash Flow (DCF) Analysis Levered

Wingstop Inc. (WING)

$309.27

-15.20 (-4.68%)
All numbers are in Millions, Currency in USD
Stock DCF: 39.12 | 309.27 | 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 153.18199.68248.81282.50357.52442.48547.63677.77838.841,038.19
Revenue (%)
Operating Cash Flow 38.7738.5865.5348.8876.2496.99120.04148.56183.87227.56
Operating Cash Flow (%)
Capital Expenditure -3.98-22.49-6.05-28.02-23.94-29.12-36.04-44.61-55.21-68.33
Capital Expenditure (%)
Free Cash Flow 34.7916.1059.4820.8652.3067.8783.99103.95128.66159.23

Weighted Average Cost Of Capital

Share price $ 309.27
Beta 1.620
Diluted Shares Outstanding 29.96
Cost of Debt
Tax Rate 23.62
After-tax Cost of Debt 3.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.950
Total Debt 714.15
Total Equity 9,266.66
Total Capital 9,980.80
Debt Weighting 7.16
Equity Weighting 92.84
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 153.18199.68248.81282.50357.52442.48547.63677.77838.841,038.19
Operating Cash Flow 38.7738.5865.5348.8876.2496.99120.04148.56183.87227.56
Capital Expenditure -3.98-22.49-6.05-28.02-23.94-29.12-36.04-44.61-55.21-68.33
Free Cash Flow 34.7916.1059.4820.8652.3067.8783.99103.95128.66159.23
WACC
PV LFCF 60.9667.7775.3483.7593.10
SUM PV LFCF 380.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.33
Free cash flow (t + 1) 165.60
Terminal Value 2,259.23
Present Value of Terminal Value 1,320.99

Intrinsic Value

Enterprise Value 1,701.91
Net Debt 529.65
Equity Value 1,172.26
Shares Outstanding 29.96
Equity Value Per Share 39.12