Discounted Cash Flow (DCF) Analysis Levered

Wingstop Inc. (WING)

$203.69

+5.92 (+2.99%)

All numbers are in Millions, Currency in USD

Stock DCF: 42.26 | 203.69 | 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	153.18	199.68	248.81	282.50	357.52	442.48	547.63	677.77	838.84	1,038.19
Revenue (%)
Operating Cash Flow	38.77	38.58	65.53	48.88	76.24	96.99	120.04	148.56	183.87	227.56
Operating Cash Flow (%)
Capital Expenditure	-3.98	-22.49	-6.05	-28.02	7.27	-21.40	-26.48	-32.77	-40.56	-50.20
Capital Expenditure (%)
Free Cash Flow	34.79	16.10	59.48	20.86	83.51	75.59	93.56	115.79	143.30	177.36

Weighted Average Cost Of Capital

Share price	$ 203.69
Beta	1.574
Diluted Shares Outstanding	29.96
Cost of Debt
Tax Rate	23.62
After-tax Cost of Debt	2.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.123
Total Debt	714.15
Total Equity	6,103.16
Total Capital	6,817.31
Debt Weighting	10.48
Equity Weighting	89.52
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	153.18	199.68	248.81	282.50	357.52	442.48	547.63	677.77	838.84	1,038.19
Operating Cash Flow	38.77	38.58	65.53	48.88	76.24	96.99	120.04	148.56	183.87	227.56
Capital Expenditure	-3.98	-22.49	-6.05	-28.02	7.27	-21.40	-26.48	-32.77	-40.56	-50.20
Free Cash Flow	34.79	16.10	59.48	20.86	83.51	75.59	93.56	115.79	143.30	177.36
WACC
PV LFCF						68.60	77.04	86.52	97.17	109.13
SUM PV LFCF										438.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.20
Free cash flow (t + 1)	180.91
Terminal Value	2,206.18
Present Value of Terminal Value	1,357.48

Intrinsic Value

Enterprise Value	1,795.94
Net Debt	529.65
Equity Value	1,266.29
Shares Outstanding	29.96
Equity Value Per Share	42.26