Discounted Cash Flow (DCF) Analysis Unlevered

Covetrus, Inc. (CVET)

$20.99

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -15.22 | 20.99 | 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 3,579.803,777.993,9764,3394,5754,864.905,173.175,500.975,849.556,220.21
Revenue (%)
EBITDA 171.43201.99-794211178-10.52-11.19-11.89-12.65-13.45
EBITDA (%)
EBIT 112.37137.89-97021-22-171.29-182.14-193.68-205.96-219.01
EBIT (%)
Depreciation 59.0564.10176190200160.77170.96181.79193.31205.56
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 16.6623.32130290183146.30155.57165.42175.91187.05
Total Cash (%)
Account Receivables 503.52480.01493574555627.87667.65709.96754.95802.78
Account Receivables (%)
Inventories 534.66564.16636530583689.09732.75779.18828.56881.06
Inventories (%)
Accounts Payable 375.78441.45520405442527.90561.35596.92634.74674.96
Accounts Payable (%)
Capital Expenditure -20.67-22.02-39-58-60-46.60-49.55-52.69-56.03-59.58
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.99
Beta 1.506
Diluted Shares Outstanding 137
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 3.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.715
Total Debt 1,046
Total Equity 2,875.63
Total Capital 3,921.63
Debt Weighting 26.67
Equity Weighting 73.33
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 3,579.803,777.993,9764,3394,5754,864.905,173.175,500.975,849.556,220.21
EBITDA 171.43201.99-794211178-10.52-11.19-11.89-12.65-13.45
EBIT 112.37137.89-97021-22-171.29-182.14-193.68-205.96-219.01
Tax Rate 53.63%29.56%0.97%20.83%0.00%21.00%21.00%21.00%21.00%21.00%
EBIAT 52.1197.14-960.5716.63-22-135.32-143.90-153.01-162.71-173.02
Depreciation 59.0564.10176190200160.77170.96181.79193.31205.56
Accounts Receivable -23.51-12.99-8119-72.87-39.79-42.31-44.99-47.84
Inventories --29.50-71.84106-53-106.09-43.66-46.43-49.37-52.50
Accounts Payable -65.6778.55-1153785.9033.4535.5737.8240.22
Capital Expenditure -20.66-22.02-39-58-60-46.60-49.55-52.69-56.03-59.58
UFCF 90.50198.89-829.8558.62121-114.21-72.49-77.09-81.97-87.16
WACC
PV UFCF -105.10-61.39-60.07-58.78-57.52
SUM PV UFCF -342.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.67
Free cash flow (t + 1) -88.91
Terminal Value -1,332.95
Present Value of Terminal Value -879.56

Intrinsic Value

Enterprise Value -1,222.41
Net Debt 863
Equity Value -2,085.41
Shares Outstanding 137
Equity Value Per Share -15.22