Discounted Cash Flow (DCF) Analysis Unlevered

Callaway Golf Company (ELY)

$21.33

-0.62 (-2.82%)
All numbers are in Millions, Currency in USD
Stock DCF: -48.51 | 21.33 | 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 1,048.741,242.831,701.061,589.463,133.454,276.815,837.377,967.3710,874.5814,842.59
Revenue (%)
EBITDA 89.16156.25170.20-40.55622.03413.82564.82770.921,052.221,436.16
EBITDA (%)
EBIT 71.56136.30135.25-80.05466.21304.36415.42567773.901,056.29
EBIT (%)
Depreciation 17.6019.9534.9539.51155.82109.46149.40203.91278.32379.88
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 85.6763.98106.67477.56352.22520.69710.69970.011,323.961,807.06
Total Cash (%)
Account Receivables 95.2772.09150.37139.11156.05320.39437.30596.86814.651,111.91
Account Receivables (%)
Inventories 262.49338.06456.64352.54533.461,011.711,380.871,884.732,572.453,511.11
Inventories (%)
Accounts Payable 63.2042.4767.8466.28138.68188.42257.17351.01479.09653.90
Accounts Payable (%)
Capital Expenditure -26.20-36.82-54.70-39.26-322.27-183.32-250.22-341.52-466.14-636.22
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 21.33
Beta 1.764
Diluted Shares Outstanding 176.93
Cost of Debt
Tax Rate 8.17
After-tax Cost of Debt 3.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.129
Total Debt 2,952.70
Total Equity 3,773.81
Total Capital 6,726.51
Debt Weighting 43.90
Equity Weighting 56.10
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 1,048.741,242.831,701.061,589.463,133.454,276.815,837.377,967.3710,874.5814,842.59
EBITDA 89.16156.25170.20-40.55622.03413.82564.82770.921,052.221,436.16
EBIT 71.56136.30135.25-80.05466.21304.36415.42567773.901,056.29
Tax Rate 40.04%20.21%17.08%0.43%8.17%17.19%17.19%17.19%17.19%17.19%
EBIAT 42.91108.75112.14-79.71428.11252.05344.02469.56640.89874.75
Depreciation 17.6019.9534.9539.51155.82109.46149.40203.91278.32379.88
Accounts Receivable -23.18-78.2911.26-16.94-164.33-116.91-159.56-217.79-297.26
Inventories --75.57-118.58104.10-180.91-478.25-369.16-503.86-687.72-938.66
Accounts Payable --20.7425.38-1.5672.4049.7468.7593.84128.08174.81
Capital Expenditure -26.20-36.83-54.70-39.26-322.27-183.32-250.22-341.52-466.14-636.22
UFCF 34.3118.75-79.1034.33136.20-414.66-174.11-237.64-324.35-442.71
WACC
PV UFCF -382.60-148.23-186.67-235.08-296.05
SUM PV UFCF -1,248.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.38
Free cash flow (t + 1) -451.56
Terminal Value -7,077.74
Present Value of Terminal Value -4,733.14

Intrinsic Value

Enterprise Value -5,981.76
Net Debt 2,600.48
Equity Value -8,582.24
Shares Outstanding 176.93
Equity Value Per Share -48.51