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 3,071.983,374.953,589.433,128.913,327.963,409.073,492.163,577.273,664.463,753.78
Revenue (%)
EBITDA 798.941,091.49892.57735.29468.59823.60843.67864.24885.30906.88
EBITDA (%)
EBIT 602.02890.79679.08503.30214.59596.21610.74625.62640.87656.49
EBIT (%)
Depreciation 196.93200.70213.48231.98254227.39232.94238.61244.43250.39
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 1,137.30555.32613.111,402.97439.27876.78898.15920.04942.47965.44
Total Cash (%)
Account Receivables 619.39697.89752.45637.83700.06703.80720.95738.53756.53774.96
Account Receivables (%)
Inventories 592.78700.54768.98750.24812.92749.19767.45786.15805.31824.94
Inventories (%)
Accounts Payable 418.54522.52574.14483.22647.99545.56558.86572.48586.44600.73
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 3,071.983,374.953,589.433,128.913,327.963,409.073,492.163,577.273,664.463,753.78
EBITDA 798.941,091.49892.57735.29468.59823.60843.67864.24885.30906.88
EBIT 602.02890.79679.08503.30214.59596.21610.74625.62640.87656.49
Tax Rate 87.72%12.73%5.28%-0.60%7.44%22.51%22.51%22.51%22.51%22.51%
EBIAT 73.91777.42643.23506.33198.62461.97473.23484.77496.58508.69
Depreciation 196.93200.70213.48231.98254227.39232.94238.61244.43250.39
Accounts Receivable --78.49-54.56114.62-62.23-3.74-17.15-17.57-18-18.44
Inventories --107.76-68.4418.75-62.6863.73-18.26-18.71-19.16-19.63
Accounts Payable -103.9851.62-90.92164.76-102.4213.3013.6213.9514.29
Capital Expenditure -317.70-699.99-851.80-850.48-953.67-754.43-772.82-791.66-810.95-830.72
UFCF -46.87195.86-66.46-69.71-461.20-107.50-88.77-90.93-93.15-95.42
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