Discounted Cash Flow (DCF) Analysis Unlevered

DXP Enterprises, Inc. (DXPE)

$25.74

+0.05 (+0.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.64 | 25.74 | 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 1,006.781,216.201,267.191,005.271,113.921,156.061,199.801,245.181,292.291,341.18
Revenue (%)
EBITDA 62.0995.9291.60-3.9168.0762.4464.8067.2569.7972.43
EBITDA (%)
EBIT 34.3169.7566.43-26.6040.9335.6436.9938.3839.8441.34
EBIT (%)
Depreciation 27.7926.1625.1722.6827.1426.8027.8128.8729.9631.09
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 22.0540.3054.20117.3548.9959.7862.0464.3866.8269.35
Total Cash (%)
Account Receivables 195.63225.30220.57187.52218.14216.41224.60233.10241.91251.06
Account Receivables (%)
Inventories 91.41114.83129.3697.07100.89109.70113.85118.15122.62127.26
Inventories (%)
Accounts Payable 80.3087.4176.4475.7477.8482.5885.7188.9592.3295.81
Accounts Payable (%)
Capital Expenditure -2.81-9.32-22.12-6.67-0.28-8.05-8.35-8.67-9-9.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 25.74
Beta 2.044
Diluted Shares Outstanding 19.21
Cost of Debt
Tax Rate 14.47
After-tax Cost of Debt 4.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.405
Total Debt 376.82
Total Equity 494.42
Total Capital 871.24
Debt Weighting 43.25
Equity Weighting 56.75
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 1,006.781,216.201,267.191,005.271,113.921,156.061,199.801,245.181,292.291,341.18
EBITDA 62.0995.9291.60-3.9168.0762.4464.8067.2569.7972.43
EBIT 34.3169.7566.43-26.6040.9335.6436.9938.3839.8441.34
Tax Rate 0.02%26.84%22.79%39.54%14.47%20.73%20.73%20.73%20.73%20.73%
EBIAT 34.3051.0351.29-16.083528.2529.3230.4331.5832.77
Depreciation 27.7926.1625.1722.6827.1426.8027.8128.8729.9631.09
Accounts Receivable --29.684.7433.05-30.621.73-8.19-8.50-8.82-9.15
Inventories --23.42-14.5332.29-3.82-8.80-4.15-4.31-4.47-4.64
Accounts Payable -7.10-10.97-0.692.104.743.123.243.373.49
Capital Expenditure -2.81-9.32-22.12-6.67-0.28-8.05-8.35-8.67-9-9.34
UFCF 59.2721.8833.5864.5829.5244.6739.5741.0642.6244.23
WACC
PV UFCF 40.7232.8931.1229.4527.87
SUM PV UFCF 162.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.68
Free cash flow (t + 1) 45.11
Terminal Value 587.42
Present Value of Terminal Value 370.09

Intrinsic Value

Enterprise Value 532.14
Net Debt 327.83
Equity Value 204.31
Shares Outstanding 19.21
Equity Value Per Share 10.64