Discounted Cash Flow (DCF) Analysis Unlevered

Koppers Holdings Inc. (KOP)

$41.02

+0.57 (+1.41%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.74 | 41.02 | 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	1,710.20	1,772.80	1,669.10	1,678.60	1,980.50	2,061.53	2,145.87	2,233.67	2,325.05	2,420.18
Revenue (%)
EBITDA	174.20	192.50	219.60	188.80	193.80	227.73	237.05	246.75	256.84	267.35
EBITDA (%)
EBIT	123.40	137.40	165.50	131.10	137.70	163.46	170.14	177.10	184.35	191.89
EBIT (%)
Depreciation	50.80	55.10	54.10	57.70	56.10	64.28	66.91	69.64	72.49	75.46
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	40.60	33	38.50	45.50	33.30	45.08	46.93	48.85	50.84	52.92
Total Cash (%)
Account Receivables	192.50	165.80	176.30	182.80	215.70	218.33	227.26	236.56	246.23	256.31
Account Receivables (%)
Inventories	284.70	299.10	295.80	313.80	355.70	362.40	377.22	392.66	408.72	425.44
Inventories (%)
Accounts Payable	177.20	169.90	154.10	171.90	207.40	205.70	214.12	222.88	232	241.49
Accounts Payable (%)
Capital Expenditure	-109.70	-37.20	-69.80	-125	-105.30	-104.97	-109.26	-113.73	-118.38	-123.23
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 41.02
Beta	1.883
Diluted Shares Outstanding	21.31
Cost of Debt
Tax Rate	33.54
After-tax Cost of Debt	3.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.432
Total Debt	904.50
Total Equity	874.26
Total Capital	1,778.76
Debt Weighting	50.85
Equity Weighting	49.15
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	1,710.20	1,772.80	1,669.10	1,678.60	1,980.50	2,061.53	2,145.87	2,233.67	2,325.05	2,420.18
EBITDA	174.20	192.50	219.60	188.80	193.80	227.73	237.05	246.75	256.84	267.35
EBIT	123.40	137.40	165.50	131.10	137.70	163.46	170.14	177.10	184.35	191.89
Tax Rate	57.30%	3.34%	19.07%	28.76%	33.54%	28.40%	28.40%	28.40%	28.40%	28.40%
EBIAT	52.69	132.81	133.93	93.39	91.51	117.03	121.82	126.80	131.99	137.39
Depreciation	50.80	55.10	54.10	57.70	56.10	64.28	66.91	69.64	72.49	75.46
Accounts Receivable	-	26.70	-10.50	-6.50	-32.90	-2.63	-8.93	-9.30	-9.68	-10.07
Inventories	-	-14.40	3.30	-18	-41.90	-6.70	-14.83	-15.43	-16.06	-16.72
Accounts Payable	-	-7.30	-15.80	17.80	35.50	-1.70	8.42	8.76	9.12	9.49
Capital Expenditure	-109.70	-37.20	-69.80	-125	-105.30	-104.97	-109.26	-113.73	-118.38	-123.23
UFCF	-6.21	155.71	95.23	19.39	3.01	65.32	64.12	66.74	69.47	72.32
WACC
PV UFCF						60.33	54.70	52.59	50.56	48.61
SUM PV UFCF										266.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.27
Free cash flow (t + 1)	73.76
Terminal Value	1,176.46
Present Value of Terminal Value	790.74

Intrinsic Value

Enterprise Value	1,057.53
Net Debt	871.20
Equity Value	186.33
Shares Outstanding	21.31
Equity Value Per Share	8.74