Discounted Cash Flow (DCF) Analysis Unlevered

Kronos Worldwide, Inc. (KRO)

$15.66

+0.23 (+1.49%)
All numbers are in Millions, Currency in USD
Stock DCF: 39.23 | 15.66 | undervalue

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 1,7291,661.901,731.101,638.801,9392,003.322,069.782,138.442,209.382,282.68
Revenue (%)
EBITDA 365.90363194.70163.60134285.06294.51304.28314.38324.81
EBITDA (%)
EBIT 324.70313.30139.809973.47222.52229.90237.53245.41253.55
EBIT (%)
Depreciation 41.2049.7054.9064.6060.5362.5464.6166.7668.9771.26
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 322373.30390.80458.30406451.01465.97481.43497.40513.90
Total Cash (%)
Account Receivables 346.50312.50309.40323360380.60393.23406.27419.75433.68
Account Receivables (%)
Inventories 382.30497.90503519432541.20559.16577.71596.87616.67
Inventories (%)
Accounts Payable 107.90103.20137.20111131.61135.97140.48145.14149.96154.93
Accounts Payable (%)
Capital Expenditure -64.30-56.30-55.10-62.80-68.45-70.73-73.07-75.50-78-80.59
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 15.66
Beta 0.980
Diluted Shares Outstanding 115.60
Cost of Debt
Tax Rate 26.80
After-tax Cost of Debt -2.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.475
Total Debt 465
Total Equity 1,810.30
Total Capital 2,275.30
Debt Weighting 20.44
Equity Weighting 79.56
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 1,7291,661.901,731.101,638.801,9392,003.322,069.782,138.442,209.382,282.68
EBITDA 365.90363194.70163.60134285.06294.51304.28314.38324.81
EBIT 324.70313.30139.809973.47222.52229.90237.53245.41253.55
Tax Rate -15.96%30.22%28.08%20.13%26.80%17.85%17.85%17.85%17.85%17.85%
EBIAT 376.53218.61100.5579.0853.78182.80188.86195.12201.60208.28
Depreciation 41.2049.7054.9064.6060.5362.5464.6166.7668.9771.26
Accounts Receivable -343.10-13.60-37-20.60-12.63-13.04-13.48-13.92
Inventories --115.60-5.10-1687-109.20-17.95-18.55-19.16-19.80
Accounts Payable --4.7034-26.2020.614.374.514.664.814.97
Capital Expenditure -64.30-56.30-55.10-62.80-68.45-70.73-73.07-75.50-78-80.59
UFCF 353.43125.71132.3525.08116.4649.17154.33159.45164.74170.20
WACC
PV UFCF 46.67139.08136.41133.79131.22
SUM PV UFCF 587.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.34
Free cash flow (t + 1) 173.61
Terminal Value 5,197.87
Present Value of Terminal Value 4,007.36

Intrinsic Value

Enterprise Value 4,594.54
Net Debt 59
Equity Value 4,535.54
Shares Outstanding 115.60
Equity Value Per Share 39.23