Discounted Cash Flow (DCF) Analysis Unlevered

Franchise Group, Inc. (FRG)

$25.47

-0.70 (-2.67%)
All numbers are in Millions, Currency in USD
Stock DCF: -208,254.63 | 25.47 | 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 174.87132.552,152.503,255.204,397.8321,836.27108,422.19538,341.612,672,992.3713,272,034.14
Revenue (%)
EBITDA 19.1212.66131.39536.13365.622,243.4411,139.1955,308.69274,620.621,363,555.78
EBITDA (%)
EBIT 7.66-0.9768.84463.36280.251,198.975,953.1729,558.87146,766.74728,731.29
EBIT (%)
Depreciation 11.4513.6362.5472.7785.361,044.475,186.0225,749.82127,853.88634,824.49
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 18.5222.98151.50292.7180.782,000.159,931.2349,310.87244,840.031,215,688.20
Total Cash (%)
Account Receivables 66.8267.7090.61118.70514.344,753.2923,601.19117,185.45581,853.262,889,037.94
Account Receivables (%)
Inventories --302.31673.17736.843,747.0218,604.8492,377.42458,675.552,277,431.69
Inventories (%)
Accounts Payable 32.4330.95450.91681.91921.274,574.3422,712.65112,773.63559,947.532,780,270.84
Accounts Payable (%)
Capital Expenditure -8.31-3.17-41.52-46.963.40-455.88-2,263.53-11,238.95-55,804.01-277,079.99
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 174.87132.552,152.503,255.204,397.8321,836.27108,422.19538,341.612,672,992.3713,272,034.14
EBITDA 19.1212.66131.39536.13365.622,243.4411,139.1955,308.69274,620.621,363,555.78
EBIT 7.66-0.9768.84463.36280.251,198.975,953.1729,558.87146,766.74728,731.29
Tax Rate 96.99%46.03%181.33%-129.62%11.42%41.23%41.23%41.23%41.23%41.23%
EBIAT 0.23-0.52-55.991,063.99248.24704.623,498.6117,371.4286,253.16428,267.17
Depreciation 11.4513.6362.5472.7785.361,044.475,186.0225,749.82127,853.88634,824.49
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 --1.47419.96231239.363,653.0618,138.3190,060.98447,173.902,220,323.31
Capital Expenditure -8.31-3.17-41.52-46.963.40-455.88-2,263.53-11,238.95-55,804.01-277,079.99
UFCF 3.377.58362.08921.85117.05-2,302.86-9,146.31-45,413.57-225,489.01-1,119,605.84
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