Discounted Cash Flow (DCF) Analysis Unlevered

Albemarle Corporation (ALB)

$270.92

+15.87 (+6.22%)

All numbers are in Millions, Currency in USD

Stock DCF: -30.72 | 270.92 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	3,071.98	3,374.95	3,589.43	3,128.91	3,327.96	3,409.07	3,492.16	3,577.27	3,664.46	3,753.78
Revenue (%)
EBITDA	798.94	1,091.49	892.57	735.29	468.59	823.60	843.67	864.24	885.30	906.88
EBITDA (%)
EBIT	602.02	890.79	679.08	503.30	214.59	596.21	610.74	625.62	640.87	656.49
EBIT (%)
Depreciation	196.93	200.70	213.48	231.98	254	227.39	232.94	238.61	244.43	250.39
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	1,137.30	555.32	613.11	1,402.97	439.27	876.78	898.15	920.04	942.47	965.44
Total Cash (%)
Account Receivables	619.39	697.89	752.45	637.83	700.06	703.80	720.95	738.53	756.53	774.96
Account Receivables (%)
Inventories	592.78	700.54	768.98	750.24	812.92	749.19	767.45	786.15	805.31	824.94
Inventories (%)
Accounts Payable	418.54	522.52	574.14	483.22	647.99	545.56	558.86	572.48	586.44	600.73
Accounts Payable (%)
Capital Expenditure	-317.70	-699.99	-851.80	-850.48	-953.67	-754.43	-772.82	-791.66	-810.95	-830.72
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 270.92
Beta	1.554
Diluted Shares Outstanding	106.81
Cost of Debt
Tax Rate	7.44
After-tax Cost of Debt	2.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.080
Total Debt	2,521.24
Total Equity	28,936.42
Total Capital	31,457.66
Debt Weighting	8.01
Equity Weighting	91.99
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	3,071.98	3,374.95	3,589.43	3,128.91	3,327.96	3,409.07	3,492.16	3,577.27	3,664.46	3,753.78
EBITDA	798.94	1,091.49	892.57	735.29	468.59	823.60	843.67	864.24	885.30	906.88
EBIT	602.02	890.79	679.08	503.30	214.59	596.21	610.74	625.62	640.87	656.49
Tax Rate	87.72%	12.73%	5.28%	-0.60%	7.44%	22.51%	22.51%	22.51%	22.51%	22.51%
EBIAT	73.91	777.42	643.23	506.33	198.62	461.97	473.23	484.77	496.58	508.69
Depreciation	196.93	200.70	213.48	231.98	254	227.39	232.94	238.61	244.43	250.39
Accounts Receivable	-	-78.49	-54.56	114.62	-62.23	-3.74	-17.15	-17.57	-18	-18.44
Inventories	-	-107.76	-68.44	18.75	-62.68	63.73	-18.26	-18.71	-19.16	-19.63
Accounts Payable	-	103.98	51.62	-90.92	164.76	-102.42	13.30	13.62	13.95	14.29
Capital Expenditure	-317.70	-699.99	-851.80	-850.48	-953.67	-754.43	-772.82	-791.66	-810.95	-830.72
UFCF	-46.87	195.86	-66.46	-69.71	-461.20	-107.50	-88.77	-90.93	-93.15	-95.42
WACC
PV UFCF						-98.22	-74.10	-69.35	-64.91	-60.75
SUM PV UFCF										-367.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.45
Free cash flow (t + 1)	-97.33
Terminal Value	-1,306.41
Present Value of Terminal Value	-831.77

Intrinsic Value

Enterprise Value	-1,199.10
Net Debt	2,081.96
Equity Value	-3,281.07
Shares Outstanding	106.81
Equity Value Per Share	-30.72