Discounted Cash Flow (DCF) Analysis Unlevered
Covetrus, Inc. (CVET)
$20.99
0.00 (0.00%)
All numbers are in Millions, Currency in USD
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 | 3,579.80 | 3,777.99 | 3,976 | 4,339 | 4,575 | 4,864.90 | 5,173.17 | 5,500.97 | 5,849.55 | 6,220.21 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 171.43 | 201.99 | -794 | 211 | 178 | -10.52 | -11.19 | -11.89 | -12.65 | -13.45 |
| EBITDA (%) | ||||||||||
| EBIT | 112.37 | 137.89 | -970 | 21 | -22 | -171.29 | -182.14 | -193.68 | -205.96 | -219.01 |
| EBIT (%) | ||||||||||
| Depreciation | 59.05 | 64.10 | 176 | 190 | 200 | 160.77 | 170.96 | 181.79 | 193.31 | 205.56 |
| 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 | 16.66 | 23.32 | 130 | 290 | 183 | 146.30 | 155.57 | 165.42 | 175.91 | 187.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 503.52 | 480.01 | 493 | 574 | 555 | 627.87 | 667.65 | 709.96 | 754.95 | 802.78 |
| Account Receivables (%) | ||||||||||
| Inventories | 534.66 | 564.16 | 636 | 530 | 583 | 689.09 | 732.75 | 779.18 | 828.56 | 881.06 |
| Inventories (%) | ||||||||||
| Accounts Payable | 375.78 | 441.45 | 520 | 405 | 442 | 527.90 | 561.35 | 596.92 | 634.74 | 674.96 |
| 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 | -59.26 |
| After-tax Cost of Debt | 3.06% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.704 |
| 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 | 3,579.80 | 3,777.99 | 3,976 | 4,339 | 4,575 | 4,864.90 | 5,173.17 | 5,500.97 | 5,849.55 | 6,220.21 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 171.43 | 201.99 | -794 | 211 | 178 | -10.52 | -11.19 | -11.89 | -12.65 | -13.45 |
| EBIT | 112.37 | 137.89 | -970 | 21 | -22 | -171.29 | -182.14 | -193.68 | -205.96 | -219.01 |
| Tax Rate | 53.63% | 29.56% | 0.97% | 20.83% | -59.26% | 9.15% | 9.15% | 9.15% | 9.15% | 9.15% |
| EBIAT | 52.11 | 97.14 | -960.57 | 16.63 | -35.04 | -155.62 | -165.48 | -175.97 | -187.12 | -198.98 |
| Depreciation | 59.05 | 64.10 | 176 | 190 | 200 | 160.77 | 170.96 | 181.79 | 193.31 | 205.56 |
| Accounts Receivable | - | 23.51 | -12.99 | -81 | 19 | -72.87 | -39.79 | -42.31 | -44.99 | -47.84 |
| Inventories | - | -29.50 | -71.84 | 106 | -53 | -106.09 | -43.66 | -46.43 | -49.37 | -52.50 |
| Accounts Payable | - | 65.67 | 78.55 | -115 | 37 | 85.90 | 33.45 | 35.57 | 37.82 | 40.22 |
| Capital Expenditure | -20.66 | -22.02 | -39 | -58 | -60 | -46.60 | -49.55 | -52.69 | -56.03 | -59.58 |
| UFCF | 90.50 | 198.89 | -829.85 | 58.62 | 107.96 | -134.51 | -94.08 | -100.04 | -106.38 | -113.12 |
| WACC | ||||||||||
| PV UFCF | -122.95 | -78.61 | -76.41 | -74.27 | -72.19 | |||||
| SUM PV UFCF | -424.42 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.40 |
| Free cash flow (t + 1) | -115.38 |
| Terminal Value | -1,559.23 |
| Present Value of Terminal Value | -995 |
Intrinsic Value
| Enterprise Value | -1,419.42 |
|---|---|
| Net Debt | 863 |
| Equity Value | -2,282.42 |
| Shares Outstanding | 137 |
| Equity Value Per Share | -16.66 |