Discounted Cash Flow (DCF) Analysis Unlevered

Donnelley Financial Solutions, Inc. (DFIN)

$43.8

-0.16 (-0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.43 | 43.8 | 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 1,004.90963874.70894.50993.30993.23993.15993.08993992.93
Revenue (%)
EBITDA 143.60185.20157.8082.20275.20175.72175.70175.69175.68175.66
EBITDA (%)
EBIT 99.10139.4086.108217.60113.19113.18113.17113.17113.16
EBIT (%)
Depreciation 44.5045.8071.7074.2057.6062.5262.5262.5162.5162.51
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 5247.3017.2073.6054.5051.1951.1851.1851.1751.17
Total Cash (%)
Account Receivables 165.20172.90161.40173.50199.10183.32183.31183.30183.28183.27
Account Receivables (%)
Inventories 23.3012.1011.104.905.6011.8311.8311.8311.8311.83
Inventories (%)
Accounts Payable 67.8072.4058.5054.2036.3060.9260.9160.9160.9060.90
Accounts Payable (%)
Capital Expenditure -27.80-37.10-44.80-31.10-42.30-38.69-38.69-38.68-38.68-38.68
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 43.8
Beta 1.908
Diluted Shares Outstanding 33.90
Cost of Debt
Tax Rate 26.24
After-tax Cost of Debt 8.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.897
Total Debt 181.30
Total Equity 1,484.82
Total Capital 1,666.12
Debt Weighting 10.88
Equity Weighting 89.12
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 1,004.90963874.70894.50993.30993.23993.15993.08993992.93
EBITDA 143.60185.20157.8082.20275.20175.72175.70175.69175.68175.66
EBIT 99.10139.4086.108217.60113.19113.18113.17113.17113.16
Tax Rate 82.74%28.33%27.83%-48.00%26.24%23.43%23.43%23.43%23.43%23.43%
EBIAT 17.1099.9062.1411.84160.5086.6786.6786.6686.6586.65
Depreciation 44.5045.8071.7074.2057.6062.5262.5262.5162.5162.51
Accounts Receivable --7.7011.50-12.10-25.6015.780.010.010.010.01
Inventories -11.2016.20-0.70-6.230000
Accounts Payable -4.60-13.90-4.30-17.9024.62-0-0-0-0
Capital Expenditure -27.80-37.10-44.80-31.10-42.30-38.69-38.69-38.68-38.68-38.68
UFCF 33.80116.7087.6444.74131.60144.67110.51110.50110.49110.48
WACC
PV UFCF 129.7788.9279.7671.5464.17
SUM PV UFCF 434.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.48
Free cash flow (t + 1) 112.69
Terminal Value 1,188.76
Present Value of Terminal Value 690.41

Intrinsic Value

Enterprise Value 1,124.58
Net Debt 126.80
Equity Value 997.78
Shares Outstanding 33.90
Equity Value Per Share 29.43