Discounted Cash Flow (DCF) Analysis Unlevered

Donnelley Financial Solutions, Inc. (DFIN)

$63.57

-0.73 (-1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 36.04 | 63.57 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 874.70894.50993.30833.60797.20782.98769.01755.29741.82728.59
Revenue (%)
EBITDA 163.80157290.50215.40194181.18177.95174.77171.66168.59
EBITDA (%)
EBIT 92.1082.80232.90152.70121.90120.33118.19116.08114.01111.97
EBIT (%)
Depreciation 71.7074.2057.6062.7072.1060.8559.7658.7057.6556.62
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 17.2073.6054.5034.2023.1035.5234.8834.2633.6533.05
Total Cash (%)
Account Receivables 161.40173.50199.10163.50151.80151.19148.49145.84143.24140.69
Account Receivables (%)
Inventories 11.104.905.607.9015.808.328.178.027.887.74
Inventories (%)
Accounts Payable 58.5054.2036.3049.2033.9041.5940.8440.1239.4038.70
Accounts Payable (%)
Capital Expenditure -44.80-31.10-42.30-54.20-61.80-42.45-41.70-40.95-40.22-39.51
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 63.57
Beta 1.516
Diluted Shares Outstanding 30.60
Cost of Debt
Tax Rate 19.41
After-tax Cost of Debt 9.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.478
Total Debt 150.60
Total Equity 1,945.24
Total Capital 2,095.84
Debt Weighting 7.19
Equity Weighting 92.81
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 874.70894.50993.30833.60797.20782.98769.01755.29741.82728.59
EBITDA 163.80157290.50215.40194181.18177.95174.77171.66168.59
EBIT 92.1082.80232.90152.70121.90120.33118.19116.08114.01111.97
Tax Rate 27.83%-48.00%26.24%26.42%19.41%10.38%10.38%10.38%10.38%10.38%
EBIAT 66.47122.54171.79112.3698.24107.84105.92104.03102.17100.35
Depreciation 71.7074.2057.6062.7072.1060.8559.7658.7057.6556.62
Accounts Receivable --12.10-25.6035.6011.700.612.702.652.602.56
Inventories -6.20-0.70-2.30-7.907.480.150.150.140.14
Accounts Payable --4.30-17.9012.90-15.307.69-0.74-0.73-0.72-0.70
Capital Expenditure -44.80-31.10-42.30-54.20-61.80-42.45-41.70-40.95-40.22-39.51
UFCF 93.37155.44142.89167.0697.04142.01126.09123.84121.63119.46
WACC
PV UFCF 127.55101.7189.7279.1569.82
SUM PV UFCF 467.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.34
Free cash flow (t + 1) 121.85
Terminal Value 1,304.58
Present Value of Terminal Value 762.45

Intrinsic Value

Enterprise Value 1,230.40
Net Debt 127.50
Equity Value 1,102.90
Shares Outstanding 30.60
Equity Value Per Share 36.04