Discounted Cash Flow (DCF) Analysis Unlevered

Franchise Group, Inc. (FRG)

$30.94

+0.39 (+1.28%)
All numbers are in Millions, Currency in USD
Stock DCF: -457,686.91 | 30.94 | 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 173.99174.87132.552,152.503,255.2015,881.3477,481.19378,011.731,844,226.698,997,530.48
Revenue (%)
EBITDA 31.6519.1212.66131.39536.131,945.369,490.9246,303.86225,905.171,102,136.03
EBITDA (%)
EBIT 23.327.66-0.9768.84463.361,095.395,344.1626,072.86127,203.12620,592.88
EBIT (%)
Depreciation 8.3211.4513.6362.5472.77849.964,146.7520,230.9998,702.05481,543.15
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 16.4318.5222.98151.50292.711,696.248,275.5540,374.37196,976.69961,001.04
Total Cash (%)
Account Receivables 74.4866.8267.7090.61118.704,445.3221,687.62105,808.57516,214.102,518,482.20
Account Receivables (%)
Inventories ---302.31673.172,757.3413,452.3865,630.86320,196.891,562,162.22
Inventories (%)
Accounts Payable 36.1032.4330.95449.47679.723,316.2016,178.9278,933385,094.781,878,783.16
Accounts Payable (%)
Capital Expenditure -15.07-8.31-3.17-41.52-46.96-609.15-2,971.88-14,499.07-70,737.40-345,110.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 30.94
Beta 1.710
Diluted Shares Outstanding 40.96
Cost of Debt
Tax Rate -129.62
After-tax Cost of Debt 5.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.590
Total Debt 2,600.07
Total Equity 1,267.43
Total Capital 3,867.50
Debt Weighting 67.23
Equity Weighting 32.77
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 173.99174.87132.552,152.503,255.2015,881.3477,481.19378,011.731,844,226.698,997,530.48
EBITDA 31.6519.1212.66131.39536.131,945.369,490.9246,303.86225,905.171,102,136.03
EBIT 23.327.66-0.9768.84463.361,095.395,344.1626,072.86127,203.12620,592.88
Tax Rate 37.34%96.99%46.03%181.33%-129.62%46.41%46.41%46.41%46.41%46.41%
EBIAT 14.620.23-0.52-55.991,063.99586.982,863.7413,971.4768,163.39332,552.48
Depreciation 8.3211.4513.6362.5472.77849.964,146.7520,230.9998,702.05481,543.15
Accounts Receivable -7.67-0.89-22.91-28.09-4,326.62-17,242.30-84,120.95-410,405.53-2,002,268.10
Inventories -----370.86-2,084.17-10,695.04-52,178.48-254,566.03-1,241,965.33
Accounts Payable --3.67-1.47418.51230.262,636.4812,862.7262,754.08306,161.781,493,688.37
Capital Expenditure -15.07-8.31-3.17-41.52-46.96-609.15-2,971.88-14,499.07-70,737.40-345,110.45
UFCF 7.877.377.58360.64921.10-2,946.52-11,036-53,841.96-262,681.74-1,281,559.87
WACC
PV UFCF -2,747.59-9,596.18-43,656.65-198,610.71-903,555.58
SUM PV UFCF -1,158,166.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.24
Free cash flow (t + 1) -1,307,191.07
Terminal Value -24,946,394.43
Present Value of Terminal Value -17,588,295.69

Intrinsic Value

Enterprise Value -18,746,462.40
Net Debt 2,307.35
Equity Value -18,748,769.75
Shares Outstanding 40.96
Equity Value Per Share -457,686.91