Discounted Cash Flow (DCF) Analysis Unlevered

Darden Restaurants, Inc. (DRI)

$114.35

+1.23 (+1.09%)
All numbers are in Millions, Currency in USD
Stock DCF: 60.74 | 114.35 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 8,080.108,510.407,806.907,196.109,63010,185.1110,772.2311,393.1912,049.9412,744.55
Revenue (%)
EBITDA 1,063.401,158.10253.90989.501,4601,200.471,269.671,342.861,420.271,502.14
EBITDA (%)
EBIT 750.30821.40-102638.601,091.60770.82815.26862.25911.95964.52
EBIT (%)
Depreciation 313.10336.70355.90350.90368.40429.65454.41480.61508.31537.61
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 146.90457.30763.301,214.70420.60778.47823.35870.81921.01974.10
Total Cash (%)
Account Receivables 83.7088.2049.8068.207289.7494.92100.39106.17112.29
Account Receivables (%)
Inventories 205.30207.30206.90190.80270.60266.61281.98298.23315.43333.61
Inventories (%)
Accounts Payable 277332.60249.40304.50366.90378.32400.13423.20447.59473.39
Accounts Payable (%)
Capital Expenditure -418.80-477.90-484.50-270.30-22.20-427.60-452.25-478.32-505.89-535.05
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 114.35
Beta 1.323
Diluted Shares Outstanding 131.80
Cost of Debt
Tax Rate 12.87
After-tax Cost of Debt 4.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.134
Total Debt 4,656.80
Total Equity 15,071.33
Total Capital 19,728.13
Debt Weighting 23.60
Equity Weighting 76.40
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 8,080.108,510.407,806.907,196.109,63010,185.1110,772.2311,393.1912,049.9412,744.55
EBITDA 1,063.401,158.10253.90989.501,4601,200.471,269.671,342.861,420.271,502.14
EBIT 750.30821.40-102638.601,091.60770.82815.26862.25911.95964.52
Tax Rate 1.60%8.81%67.45%-9.16%12.87%16.31%16.31%16.31%16.31%16.31%
EBIAT 738.28749.06-33.20697.09951.14645.07682.25721.58763.18807.17
Depreciation 313.10336.70355.90350.90368.40429.65454.41480.61508.31537.61
Accounts Receivable --4.5038.40-18.40-3.80-17.74-5.17-5.47-5.79-6.12
Inventories --20.4016.10-79.803.99-15.37-16.25-17.19-18.18
Accounts Payable -55.60-83.2055.1062.4011.4221.8123.0724.3925.80
Capital Expenditure -418.80-477.90-484.50-270.30-22.20-427.60-452.25-478.32-505.89-535.05
UFCF 632.58656.96-206.20830.491,276.14644.79685.69725.21767.02811.23
WACC
PV UFCF 596.97587.76575.54563.57551.85
SUM PV UFCF 2,875.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.01
Free cash flow (t + 1) 827.45
Terminal Value 13,767.97
Present Value of Terminal Value 9,365.91

Intrinsic Value

Enterprise Value 12,241.60
Net Debt 4,236.20
Equity Value 8,005.40
Shares Outstanding 131.80
Equity Value Per Share 60.74