Discounted Cash Flow (DCF) Analysis Unlevered
Franchise Group, Inc. (FRG)
$25.47
-0.70 (-2.67%)
All numbers are in Millions, Currency in USD
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 | 174.87 | 132.55 | 2,152.50 | 3,255.20 | 4,397.83 | 21,836.27 | 108,422.19 | 538,341.61 | 2,672,992.37 | 13,272,034.14 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 19.12 | 12.66 | 131.39 | 536.13 | 365.62 | 2,243.44 | 11,139.19 | 55,308.69 | 274,620.62 | 1,363,555.78 |
EBITDA (%) | ||||||||||
EBIT | 7.66 | -0.97 | 68.84 | 463.36 | 280.25 | 1,198.97 | 5,953.17 | 29,558.87 | 146,766.74 | 728,731.29 |
EBIT (%) | ||||||||||
Depreciation | 11.45 | 13.63 | 62.54 | 72.77 | 85.36 | 1,044.47 | 5,186.02 | 25,749.82 | 127,853.88 | 634,824.49 |
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 | 18.52 | 22.98 | 151.50 | 292.71 | 80.78 | 2,000.15 | 9,931.23 | 49,310.87 | 244,840.03 | 1,215,688.20 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 66.82 | 67.70 | 90.61 | 118.70 | 514.34 | 4,753.29 | 23,601.19 | 117,185.45 | 581,853.26 | 2,889,037.94 |
Account Receivables (%) | ||||||||||
Inventories | - | - | 302.31 | 673.17 | 736.84 | 3,747.02 | 18,604.84 | 92,377.42 | 458,675.55 | 2,277,431.69 |
Inventories (%) | ||||||||||
Accounts Payable | 32.43 | 30.95 | 450.91 | 681.91 | 921.27 | 4,574.34 | 22,712.65 | 112,773.63 | 559,947.53 | 2,780,270.84 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -8.31 | -3.17 | -41.52 | -46.96 | 3.40 | -455.88 | -2,263.53 | -11,238.95 | -55,804.01 | -277,079.99 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 25.47 |
---|---|
Beta | 1.726 |
Diluted Shares Outstanding | 39.31 |
Cost of Debt | |
Tax Rate | 11.42 |
After-tax Cost of Debt | 11.04% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.529 |
Total Debt | 2,728.88 |
Total Equity | 1,001.22 |
Total Capital | 3,730.10 |
Debt Weighting | 73.16 |
Equity Weighting | 26.84 |
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 | 174.87 | 132.55 | 2,152.50 | 3,255.20 | 4,397.83 | 21,836.27 | 108,422.19 | 538,341.61 | 2,672,992.37 | 13,272,034.14 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 19.12 | 12.66 | 131.39 | 536.13 | 365.62 | 2,243.44 | 11,139.19 | 55,308.69 | 274,620.62 | 1,363,555.78 |
EBIT | 7.66 | -0.97 | 68.84 | 463.36 | 280.25 | 1,198.97 | 5,953.17 | 29,558.87 | 146,766.74 | 728,731.29 |
Tax Rate | 96.99% | 46.03% | 181.33% | -129.62% | 11.42% | 41.23% | 41.23% | 41.23% | 41.23% | 41.23% |
EBIAT | 0.23 | -0.52 | -55.99 | 1,063.99 | 248.24 | 704.62 | 3,498.61 | 17,371.42 | 86,253.16 | 428,267.17 |
Depreciation | 11.45 | 13.63 | 62.54 | 72.77 | 85.36 | 1,044.47 | 5,186.02 | 25,749.82 | 127,853.88 | 634,824.49 |
Accounts Receivable | - | -0.89 | -22.91 | -28.09 | -395.64 | -4,238.95 | -18,847.90 | -93,584.26 | -464,667.81 | -2,307,184.68 |
Inventories | - | - | - | -370.86 | -63.67 | -3,010.18 | -14,857.82 | -73,772.57 | -366,298.13 | -1,818,756.14 |
Accounts Payable | - | -1.47 | 419.96 | 231 | 239.36 | 3,653.06 | 18,138.31 | 90,060.98 | 447,173.90 | 2,220,323.31 |
Capital Expenditure | -8.31 | -3.17 | -41.52 | -46.96 | 3.40 | -455.88 | -2,263.53 | -11,238.95 | -55,804.01 | -277,079.99 |
UFCF | 3.37 | 7.58 | 362.08 | 921.85 | 117.05 | -2,302.86 | -9,146.31 | -45,413.57 | -225,489.01 | -1,119,605.84 |
WACC | ||||||||||
PV UFCF | -2,071.47 | -7,400.66 | -33,053.91 | -147,630.12 | -659,366.88 | |||||
SUM PV UFCF | -849,523.04 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 11.17 |
Free cash flow (t + 1) | -1,141,997.96 |
Terminal Value | -12,453,630.98 |
Present Value of Terminal Value | -7,334,288.08 |
Intrinsic Value
Enterprise Value | -8,183,811.12 |
---|---|
Net Debt | 2,648.09 |
Equity Value | -8,186,459.21 |
Shares Outstanding | 39.31 |
Equity Value Per Share | -208,254.63 |