Discounted Cash Flow (DCF) Analysis Unlevered

Brady Corporation (BRC)

$47.9

+0.59 (+1.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 51.93 | 47.9 | 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 1,173.851,160.651,081.301,144.701,302.061,339.981,379.011,419.171,460.501,503.03
Revenue (%)
EBITDA 180.62191.27166.29191.19227.44218.19224.55231.09237.82244.74
EBITDA (%)
EBIT 155.18167.47142.86165.71193.26188.08193.55199.19204.99210.96
EBIT (%)
Depreciation 25.4423.8023.4425.4834.1830.1130.9931.8932.8233.78
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 181.43279.07217.64147.33114.07217.77224.12230.64237.36244.27
Total Cash (%)
Account Receivables 161.28158.11146.18170.58183.23187.21192.66198.27204.05209.99
Account Receivables (%)
Inventories 113.07120.04135.66136.11190.02158.13162.74167.48172.35177.37
Inventories (%)
Accounts Payable 66.5464.8162.5582.1581.1281.5983.9686.4188.9291.51
Accounts Payable (%)
Capital Expenditure -21.78-32.83-27.28-27.19-43.14-34.56-35.56-36.60-37.66-38.76
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 47.9
Beta 0.764
Diluted Shares Outstanding 51.65
Cost of Debt
Tax Rate 21.88
After-tax Cost of Debt 0.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.308
Total Debt 129.15
Total Equity 2,474.08
Total Capital 2,603.23
Debt Weighting 4.96
Equity Weighting 95.04
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 1,173.851,160.651,081.301,144.701,302.061,339.981,379.011,419.171,460.501,503.03
EBITDA 180.62191.27166.29191.19227.44218.19224.55231.09237.82244.74
EBIT 155.18167.47142.86165.71193.26188.08193.55199.19204.99210.96
Tax Rate 40.10%20.28%20.27%24.19%21.88%25.34%25.34%25.34%25.34%25.34%
EBIAT 92.96133.51113.90125.63150.98140.42144.50148.71153.04157.50
Depreciation 25.4423.8023.4425.4834.1830.1130.9931.8932.8233.78
Accounts Receivable -3.1711.93-24.40-12.65-3.98-5.45-5.61-5.77-5.94
Inventories --6.97-15.62-0.44-53.9231.89-4.61-4.74-4.88-5.02
Accounts Payable --1.73-2.2619.61-1.040.472.382.452.522.59
Capital Expenditure -21.78-32.83-27.28-27.19-43.14-34.56-35.56-36.60-37.66-38.76
UFCF 96.62118.96104.10118.6874.41164.36132.25136.10140.07144.15
WACC
PV UFCF 153.63115.56111.16106.94102.87
SUM PV UFCF 590.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.98
Free cash flow (t + 1) 147.03
Terminal Value 2,952.39
Present Value of Terminal Value 2,106.98

Intrinsic Value

Enterprise Value 2,697.15
Net Debt 15.08
Equity Value 2,682.07
Shares Outstanding 51.65
Equity Value Per Share 51.93