Discounted Cash Flow (DCF) Analysis Levered

Wingstop Inc. (WING)

$128.87

-1.47 (-1.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 27.47 | 128.87 | 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	133.32	153.18	199.68	248.81	282.50	341.40	412.59	498.61	602.57	728.20
Revenue (%)
Operating Cash Flow	27.43	38.77	38.58	54.08	61.41	74.21	89.68	108.38	130.98	158.29
Operating Cash Flow (%)
Capital Expenditure	-2.53	-3.98	-22.49	-6.05	-28.02	-19.20	-23.20	-28.04	-33.88	-40.94
Capital Expenditure (%)
Free Cash Flow	24.90	34.79	16.10	48.03	33.39	55.01	66.49	80.35	97.10	117.35

Weighted Average Cost Of Capital

Share price	$ 128.87
Beta	1.678
Diluted Shares Outstanding	29.80
Cost of Debt
Tax Rate	27.58
After-tax Cost of Debt	2.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.887
Total Debt	471.84
Total Equity	3,840.84
Total Capital	4,312.68
Debt Weighting	10.94
Equity Weighting	89.06
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	133.32	153.18	199.68	248.81	282.50	341.40	412.59	498.61	602.57	728.20
Operating Cash Flow	27.43	38.77	38.58	54.08	61.41	74.21	89.68	108.38	130.98	158.29
Capital Expenditure	-2.53	-3.98	-22.49	-6.05	-28.02	-19.20	-23.20	-28.04	-33.88	-40.94
Free Cash Flow	24.90	34.79	16.10	48.03	33.39	55.01	66.49	80.35	97.10	117.35
WACC
PV LFCF						31.14	34.23	37.62	41.35	45.45
SUM PV LFCF										304.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.95
Free cash flow (t + 1)	119.69
Terminal Value	1,505.56
Present Value of Terminal Value	936.96

Intrinsic Value

Enterprise Value	1,241.91
Net Debt	423.25
Equity Value	818.66
Shares Outstanding	29.80
Equity Value Per Share	27.47