Discounted Cash Flow (DCF) Analysis Unlevered
Franchise Group, Inc. (FRG)
$30.94
+0.39 (+1.28%)
All numbers are in Millions, Currency in USD
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 | 173.99 | 174.87 | 132.55 | 2,152.50 | 3,255.20 | 15,881.34 | 77,481.19 | 378,011.73 | 1,844,226.69 | 8,997,530.48 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 31.65 | 19.12 | 12.66 | 131.39 | 536.13 | 1,945.36 | 9,490.92 | 46,303.86 | 225,905.17 | 1,102,136.03 |
EBITDA (%) | ||||||||||
EBIT | 23.32 | 7.66 | -0.97 | 68.84 | 463.36 | 1,095.39 | 5,344.16 | 26,072.86 | 127,203.12 | 620,592.88 |
EBIT (%) | ||||||||||
Depreciation | 8.32 | 11.45 | 13.63 | 62.54 | 72.77 | 849.96 | 4,146.75 | 20,230.99 | 98,702.05 | 481,543.15 |
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 | 16.43 | 18.52 | 22.98 | 151.50 | 292.71 | 1,696.24 | 8,275.55 | 40,374.37 | 196,976.69 | 961,001.04 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 74.48 | 66.82 | 67.70 | 90.61 | 118.70 | 4,445.32 | 21,687.62 | 105,808.57 | 516,214.10 | 2,518,482.20 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | 302.31 | 673.17 | 2,757.34 | 13,452.38 | 65,630.86 | 320,196.89 | 1,562,162.22 |
Inventories (%) | ||||||||||
Accounts Payable | 36.10 | 32.43 | 30.95 | 449.47 | 679.72 | 3,316.20 | 16,178.92 | 78,933 | 385,094.78 | 1,878,783.16 |
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 | 173.99 | 174.87 | 132.55 | 2,152.50 | 3,255.20 | 15,881.34 | 77,481.19 | 378,011.73 | 1,844,226.69 | 8,997,530.48 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 31.65 | 19.12 | 12.66 | 131.39 | 536.13 | 1,945.36 | 9,490.92 | 46,303.86 | 225,905.17 | 1,102,136.03 |
EBIT | 23.32 | 7.66 | -0.97 | 68.84 | 463.36 | 1,095.39 | 5,344.16 | 26,072.86 | 127,203.12 | 620,592.88 |
Tax Rate | 37.34% | 96.99% | 46.03% | 181.33% | -129.62% | 46.41% | 46.41% | 46.41% | 46.41% | 46.41% |
EBIAT | 14.62 | 0.23 | -0.52 | -55.99 | 1,063.99 | 586.98 | 2,863.74 | 13,971.47 | 68,163.39 | 332,552.48 |
Depreciation | 8.32 | 11.45 | 13.63 | 62.54 | 72.77 | 849.96 | 4,146.75 | 20,230.99 | 98,702.05 | 481,543.15 |
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 | -1.47 | 418.51 | 230.26 | 2,636.48 | 12,862.72 | 62,754.08 | 306,161.78 | 1,493,688.37 |
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 | 7.87 | 7.37 | 7.58 | 360.64 | 921.10 | -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 |