Discounted Cash Flow (DCF) Analysis Unlevered

Berry Global Group, Inc. (BERY)

$61.46

+0.68 (+1.12%)

All numbers are in Millions, Currency in USD

Stock DCF: 267.46 | 61.46 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	7,869	8,878	11,709	13,850	14,495	16,946.55	19,812.74	23,163.69	27,081.39	31,661.69
Revenue (%)
EBITDA	880	914	1,993	2,095	2,039	2,294.31	2,682.35	3,136.02	3,666.42	4,286.52
EBITDA (%)
EBIT	342	301	1,148	1,241	1,220	1,183.48	1,383.64	1,617.66	1,891.25	2,211.12
EBIT (%)
Depreciation	538	613	845	854	819	1,110.83	1,298.71	1,518.36	1,775.16	2,075.40
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	381	750	750	1,091	1,410	1,264.20	1,478.02	1,728	2,020.26	2,361.94
Total Cash (%)
Account Receivables	941	1,526	1,469	1,879	1,777	2,288.43	2,675.47	3,127.98	3,657.01	4,275.53
Account Receivables (%)
Inventories	887	1,324	1,268	1,907	1,802	2,142.57	2,504.94	2,928.61	3,423.92	4,003.02
Inventories (%)
Accounts Payable	783	1,159	1,115	2,041	1,795	2,021.65	2,363.57	2,763.33	3,230.69	3,777.10
Accounts Payable (%)
Capital Expenditure	-336	-399	-583	-676	-687	-791.87	-925.80	-1,082.38	-1,265.44	-1,479.47
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 61.46
Beta	1.164
Diluted Shares Outstanding	138.30
Cost of Debt
Tax Rate	17.99
After-tax Cost of Debt	2.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.193
Total Debt	9,684
Total Equity	8,499.92
Total Capital	18,183.92
Debt Weighting	53.26
Equity Weighting	46.74
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	7,869	8,878	11,709	13,850	14,495	16,946.55	19,812.74	23,163.69	27,081.39	31,661.69
EBITDA	880	914	1,993	2,095	2,039	2,294.31	2,682.35	3,136.02	3,666.42	4,286.52
EBIT	342	301	1,148	1,241	1,220	1,183.48	1,383.64	1,617.66	1,891.25	2,211.12
Tax Rate	-3.98%	17.55%	21.60%	19.01%	17.99%	14.43%	14.43%	14.43%	14.43%	14.43%
EBIAT	355.62	248.17	900.04	1,005.14	1,000.56	1,012.68	1,183.96	1,384.20	1,618.31	1,892.02
Depreciation	538	613	845	854	819	1,110.83	1,298.71	1,518.36	1,775.16	2,075.40
Accounts Receivable	-	-585	57	-410	102	-511.43	-387.04	-452.51	-529.04	-618.51
Inventories	-	-437	56	-639	105	-340.57	-362.37	-423.66	-495.32	-579.09
Accounts Payable	-	376	-44	926	-246	226.65	341.92	399.75	467.36	546.41
Capital Expenditure	-336	-399	-583	-676	-687	-791.87	-925.80	-1,082.38	-1,265.44	-1,479.47
UFCF	557.62	-183.83	1,231.04	1,060.14	1,093.56	706.30	1,149.37	1,343.77	1,571.04	1,836.75
WACC
PV UFCF						668.91	1,030.90	1,141.45	1,263.85	1,399.38
SUM PV UFCF										5,504.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.59
Free cash flow (t + 1)	1,873.49
Terminal Value	52,186.33
Present Value of Terminal Value	39,759.67

Intrinsic Value

Enterprise Value	45,264.17
Net Debt	8,274
Equity Value	36,990.17
Shares Outstanding	138.30
Equity Value Per Share	267.46