Discounted Cash Flow (DCF) Analysis Unlevered

Domino's Pizza, Inc. (DPZ)

$316.44

+6.24 (+2.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 771.17 | 316.44 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,787.983,432.873,618.774,135.294,725.535,400.026,170.787,051.558,058.049,208.1810,522.49
Revenue (%)
EBITDA 567.06628.69693.39796.93910.681,040.661,189.191,358.931,552.891,774.542,027.83
EBITDA (%)
EBIT 522.69575.02633.45730.61834.90954.061,090.241,245.851,423.681,626.881,859.09
EBIT (%)
Depreciation 44.3753.6759.9366.3175.7886.5998.95113.08129.22147.66168.74
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 35.7725.44190.62100.51114.85131.24149.98171.38195.85223.80255.74
Total Cash (%)
Account Receivables 173.68190.09210.26242.29276.87316.39361.55413.15472.12539.51616.52
Account Receivables (%)
Inventories 39.9645.9852.9658.3966.7276.2587.1399.57113.78130.02148.58
Inventories (%)
Accounts Payable 106.8992.55111.10132.33151.22172.80197.47225.65257.86294.67336.72
Accounts Payable (%)
Capital Expenditure -90.01-119.89-85.57-125.24-143.11-163.54-186.88-213.55-244.03-278.87-318.67
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 316.44
Beta 0.608
Diluted Shares Outstanding 37.69
Cost of Debt
Tax Rate 18.42
After-tax Cost of Debt 2.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.523
Total Debt 5,291.85
Total Equity 11,927.05
Total Capital 17,218.90
Debt Weighting 30.73
Equity Weighting 69.27
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,787.983,432.873,618.774,135.294,725.535,400.026,170.787,051.558,058.049,208.1810,522.49
EBITDA 567.06628.69693.39796.93910.681,040.661,189.191,358.931,552.891,774.542,027.83
EBIT 522.69575.02633.45730.61834.90954.061,090.241,245.851,423.681,626.881,859.09
Tax Rate 30.55%15.56%16.98%18.60%11.50%18.42%18.60%18.60%18.60%18.60%18.60%
EBIAT 363.01485.54525.93594.72738.89778.35887.451,014.121,158.871,324.271,513.29
Depreciation 44.3753.6759.9366.3175.7886.5998.95113.08129.22147.66168.74
Accounts Receivable --16.41-20.17-32.03-34.58-39.52-45.16-51.60-58.97-67.39-77.01
Inventories --6.01-6.98-5.43-8.33-9.52-10.88-12.44-14.21-16.24-18.56
Accounts Payable --14.3518.5521.2318.8921.5824.6628.1932.2136.8142.06
Capital Expenditure -90.01-119.89-85.56-125.24-88.77-94.17-186.88-213.55-244.03-278.87-318.67
UFCF 317.37382.55491.70519.56647.53673.95768.15877.791,003.081,146.251,309.85
WACC
PV UFCF 547.77647.53639.24691.06749.03811.85879.95953.76
SUM PV UFCF 4,307.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.43
Free cash flow (t + 1) 1,336.05
Terminal Value 38,951.93
Present Value of Terminal Value 29,902.53

Intrinsic Value

Enterprise Value 34,210.03
Net Debt 5,143.69
Equity Value 29,066.33
Shares Outstanding 37.69
Equity Value Per Share 771.17