Discounted Cash Flow (DCF) Analysis Unlevered

Ingles Markets, Incorporated (IMKTA)

$88.88

+0.77 (+0.87%)

All numbers are in Millions, Currency in USD

Stock DCF: 371.02 | 88.88 | undervalue

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	4,092.80	4,202.03	4,610.61	4,987.92	5,678.84	6,167.60	6,698.44	7,274.96	7,901.11	8,581.15
Revenue (%)
EBITDA	240.97	266.53	391.86	469.05	500.58	480.43	521.78	566.69	615.47	668.44
EBITDA (%)
EBIT	127.89	154.01	275.57	351.95	382.78	327.66	355.86	386.49	419.76	455.88
EBIT (%)
Depreciation	113.08	112.52	116.28	117.10	117.80	152.77	165.92	180.20	195.71	212.55
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	10.54	42.13	6.90	75.31	267.20	94.05	102.15	110.94	120.49	130.86
Total Cash (%)
Account Receivables	70.06	71.95	81.36	95.08	97.16	108.62	117.97	128.12	139.15	151.13
Account Receivables (%)
Inventories	372.20	374.13	366.82	389.95	457.95	516.05	560.47	608.70	661.09	717.99
Inventories (%)
Accounts Payable	165.17	151.33	204.11	189.43	213.39	242.01	262.84	285.46	310.03	336.71
Accounts Payable (%)
Capital Expenditure	-150.49	-161.75	-122.77	-140.60	-119.61	-186.43	-202.48	-219.91	-238.83	-259.39
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 88.88
Beta	0.643
Diluted Shares Outstanding	19.62
Cost of Debt
Tax Rate	24.50
After-tax Cost of Debt	2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.563
Total Debt	612.50
Total Equity	1,743.60
Total Capital	2,356.11
Debt Weighting	26.00
Equity Weighting	74.00
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	4,092.80	4,202.03	4,610.61	4,987.92	5,678.84	6,167.60	6,698.44	7,274.96	7,901.11	8,581.15
EBITDA	240.97	266.53	391.86	469.05	500.58	480.43	521.78	566.69	615.47	668.44
EBIT	127.89	154.01	275.57	351.95	382.78	327.66	355.86	386.49	419.76	455.88
Tax Rate	-21.22%	23.47%	24.01%	23.77%	24.50%	14.91%	14.91%	14.91%	14.91%	14.91%
EBIAT	155.03	117.86	209.40	268.28	289	278.82	302.82	328.88	357.19	387.93
Depreciation	113.08	112.52	116.28	117.10	117.80	152.77	165.92	180.20	195.71	212.55
Accounts Receivable	-	-1.89	-9.41	-13.72	-2.08	-11.46	-9.35	-10.15	-11.03	-11.98
Inventories	-	-1.93	7.30	-23.13	-67.99	-58.10	-44.42	-48.24	-52.39	-56.90
Accounts Payable	-	-13.84	52.78	-14.68	23.96	28.62	20.83	22.62	24.57	26.68
Capital Expenditure	-150.49	-161.75	-122.77	-140.60	-119.61	-186.43	-202.48	-219.91	-238.83	-259.39
UFCF	117.63	50.97	253.59	193.25	241.08	204.21	233.32	253.40	275.21	298.90
WACC
PV UFCF						193.47	209.43	215.49	221.74	228.16
SUM PV UFCF										1,068.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.55
Free cash flow (t + 1)	304.88
Terminal Value	8,588.11
Present Value of Terminal Value	6,555.51

Intrinsic Value

Enterprise Value	7,623.80
Net Debt	345.30
Equity Value	7,278.50
Shares Outstanding	19.62
Equity Value Per Share	371.02