Discounted Cash Flow (DCF) Analysis Unlevered

HEICO Corporation (HEI)

$199.17

-0.21 (-0.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 75.33 | 199.17 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,055.651,787.011,865.682,208.322,968.103,295.383,658.734,062.154,510.065,007.35
Revenue (%)
EBITDA 543.03466.58487.36593.74758.31863.94959.201,064.961,182.391,312.76
EBITDA (%)
EBIT 459.54378.01394.34497.41628.27714.02792.75880.16977.211,084.96
EBIT (%)
Depreciation 83.5088.5693.0296.33130.04149.92166.45184.80205.18227.81
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 57406.85108.30139.50171.05286.20317.76352.80391.70434.89
Total Cash (%)
Account Receivables 317.46270.86324.99388.83620.78570.38633.27703.10780.62866.69
Account Receivables (%)
Inventories 420.32463.20478.05582.471,013.68873.40969.711,076.631,195.341,327.14
Inventories (%)
Accounts Payable 106.2376.2485.54116.55205.89172.90191.96213.13236.63262.72
Accounts Payable (%)
Capital Expenditure -28.94-22.94-36.18-31.98-49.43-51.04-56.67-62.92-69.86-77.56
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 199.17
Beta 1.170
Diluted Shares Outstanding 138.91
Cost of Debt
Tax Rate 27.32
After-tax Cost of Debt 3.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.807
Total Debt 2,478.08
Total Equity 27,665.71
Total Capital 30,143.79
Debt Weighting 8.22
Equity Weighting 91.78
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,055.651,787.011,865.682,208.322,968.103,295.383,658.734,062.154,510.065,007.35
EBITDA 543.03466.58487.36593.74758.31863.94959.201,064.961,182.391,312.76
EBIT 459.54378.01394.34497.41628.27714.02792.75880.16977.211,084.96
Tax Rate 25.11%13.94%21.40%28.38%27.32%23.23%23.23%23.23%23.23%23.23%
EBIAT 344.14325.31309.95356.25456.64548.15608.59675.70750.20832.92
Depreciation 83.5088.5693.0296.33130.04149.92166.45184.80205.18227.81
Accounts Receivable -46.60-54.13-63.83-231.9550.40-62.89-69.83-77.53-86.07
Inventories --42.89-14.85-104.42-431.21140.28-96.30-106.92-118.71-131.80
Accounts Payable --29.999.3131.0189.34-32.9919.0621.1723.5026.09
Capital Expenditure -28.94-22.94-36.18-31.98-49.43-51.04-56.67-62.92-69.86-77.56
UFCF 398.70364.65307.11283.35-36.57804.71578.24642712.79791.38
WACC
PV UFCF 736.51484.38492.21500.17508.25
SUM PV UFCF 2,721.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.26
Free cash flow (t + 1) 823.03
Terminal Value 15,647.05
Present Value of Terminal Value 10,049.09

Intrinsic Value

Enterprise Value 12,770.60
Net Debt 2,307.03
Equity Value 10,463.57
Shares Outstanding 138.91
Equity Value Per Share 75.33