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 133.32153.18199.68248.81282.50341.40412.59498.61602.57728.20
Revenue (%)
Operating Cash Flow 27.4338.7738.5854.0861.4174.2189.68108.38130.98158.29
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 24.9034.7916.1048.0333.3955.0166.4980.3597.10117.35

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 133.32153.18199.68248.81282.50341.40412.59498.61602.57728.20
Operating Cash Flow 27.4338.7738.5854.0861.4174.2189.68108.38130.98158.29
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 24.9034.7916.1048.0333.3955.0166.4980.3597.10117.35
WACC
PV LFCF 31.1434.2337.6241.3545.45
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