Discounted Cash Flow (DCF) Analysis Unlevered

CSW Industrials, Inc. (CSWI)

$118.15

-0.32 (-0.27%)

All numbers are in Millions, Currency in USD

Stock DCF: 64.79 | 118.15 | overvalue

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	326.22	350.15	385.87	419.20	626.43	744.85	885.64	1,053.04	1,252.09	1,488.77
Revenue (%)
EBITDA	20.93	76.24	74.84	76.54	132.87	129.68	154.19	183.34	218	259.20
EBITDA (%)
EBIT	6	62.40	59.99	53.50	95.98	94.29	112.11	133.30	158.50	188.46
EBIT (%)
Depreciation	14.93	13.84	14.85	23.04	36.89	35.39	42.09	50.04	59.50	70.75
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	11.71	26.65	18.34	10.09	16.62	31.30	37.22	44.25	52.62	62.56
Total Cash (%)
Account Receivables	63.38	66.14	74.88	96.69	122.80	149.55	177.82	211.44	251.40	298.92
Account Receivables (%)
Inventories	42.97	51.43	53.75	98.09	150.11	132.81	157.91	187.76	223.25	265.45
Inventories (%)
Accounts Payable	16.83	19.02	21.98	32.44	47.84	47.17	56.08	66.68	79.29	94.28
Accounts Payable (%)
Capital Expenditure	-5.53	-7.51	-11.44	-8.83	-15.65	-17	-20.21	-24.04	-28.58	-33.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 118.15
Beta	0.801
Diluted Shares Outstanding	15.81
Cost of Debt
Tax Rate	27.42
After-tax Cost of Debt	1.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.483
Total Debt	325.32
Total Equity	1,867.60
Total Capital	2,192.92
Debt Weighting	14.83
Equity Weighting	85.17
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	326.22	350.15	385.87	419.20	626.43	744.85	885.64	1,053.04	1,252.09	1,488.77
EBITDA	20.93	76.24	74.84	76.54	132.87	129.68	154.19	183.34	218	259.20
EBIT	6	62.40	59.99	53.50	95.98	94.29	112.11	133.30	158.50	188.46
Tax Rate	124.63%	25.82%	20.35%	21.19%	27.42%	43.88%	43.88%	43.88%	43.88%	43.88%
EBIAT	-1.48	46.29	47.78	42.17	69.66	52.91	62.91	74.81	88.95	105.76
Depreciation	14.93	13.84	14.85	23.04	36.89	35.39	42.09	50.04	59.50	70.75
Accounts Receivable	-	-2.75	-8.74	-21.81	-26.11	-26.75	-28.27	-33.61	-39.97	-47.52
Inventories	-	-8.46	-2.32	-44.33	-52.03	17.30	-25.10	-29.85	-35.49	-42.20
Accounts Payable	-	2.20	2.95	10.47	15.39	-0.67	8.92	10.60	12.60	14.99
Capital Expenditure	-5.53	-7.51	-11.44	-8.83	-15.65	-17	-20.21	-24.04	-28.58	-33.98
UFCF	7.92	43.60	43.08	0.69	28.15	61.19	40.33	47.95	57.01	67.79
WACC
PV UFCF						57.43	35.52	39.64	44.23	49.36
SUM PV UFCF										226.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.55
Free cash flow (t + 1)	69.14
Terminal Value	1,519.67
Present Value of Terminal Value	1,106.58

Intrinsic Value

Enterprise Value	1,332.76
Net Debt	308.70
Equity Value	1,024.06
Shares Outstanding	15.81
Equity Value Per Share	64.79