Discounted Cash Flow (DCF) Analysis Unlevered

Deluxe Corporation (DLX)

$17.85

+0.92 (+5.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 80.36 | 17.85 | undervalue

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 1,965.561,998.022,008.711,790.782,022.202,043.742,065.512,087.502,109.742,132.21
Revenue (%)
EBITDA 456.84370.84-24.91164.42298263.56266.37269.21272.07274.97
EBITDA (%)
EBIT 334.19239.74-150.9553.63149.20130.22131.61133.01134.43135.86
EBIT (%)
Depreciation 122.65131.10126.04110.79148.80133.34134.76136.19137.64139.11
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 59.2459.7473.62169.0441.2086.4387.3588.2889.2290.17
Total Cash (%)
Account Receivables 149.84204.32196.21179.58190.32192.34194.39196.46198.55200.67
Account Receivables (%)
Inventories 42.2546.4439.9240.1343.9944.4644.9445.4145.9046.39
Inventories (%)
Accounts Payable 104.48106.98112.20116.99115.20116.43117.67118.93120.19121.47
Accounts Payable (%)
Capital Expenditure -47.45-62.24-66.60-73.72-109.10-75.03-75.83-76.64-77.45-78.28
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 17.85
Beta 1.497
Diluted Shares Outstanding 43.10
Cost of Debt
Tax Rate 33.26
After-tax Cost of Debt 2.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.683
Total Debt 1,739.40
Total Equity 769.34
Total Capital 2,508.74
Debt Weighting 69.33
Equity Weighting 30.67
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 1,965.561,998.022,008.711,790.782,022.202,043.742,065.512,087.502,109.742,132.21
EBITDA 456.84370.84-24.91164.42298263.56266.37269.21272.07274.97
EBIT 334.19239.74-150.9553.63149.20130.22131.61133.01134.43135.86
Tax Rate 26.43%29.63%-7.69%71.20%33.26%30.57%30.57%30.57%30.57%30.57%
EBIAT 245.87168.71-162.5515.4599.5790.4291.3892.3693.3494.33
Depreciation 122.65131.10126.04110.79148.80133.34134.76136.19137.64139.11
Accounts Receivable --54.488.1116.63-10.74-2.03-2.05-2.07-2.09-2.11
Inventories --4.196.52-0.21-3.86-0.47-0.47-0.48-0.48-0.49
Accounts Payable -2.505.224.79-1.791.231.241.251.271.28
Capital Expenditure -47.45-62.24-66.59-73.72-109.10-75.03-75.83-76.64-77.45-78.28
UFCF 321.07181.40-83.2673.74122.88147.46149.03150.62152.22153.84
WACC
PV UFCF 140.76135.79131126.38121.93
SUM PV UFCF 655.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.76
Free cash flow (t + 1) 156.92
Terminal Value 5,685.48
Present Value of Terminal Value 4,505.99

Intrinsic Value

Enterprise Value 5,161.86
Net Debt 1,698.20
Equity Value 3,463.66
Shares Outstanding 43.10
Equity Value Per Share 80.36