Discounted Cash Flow (DCF) Analysis Unlevered

Lincoln Electric Holdings, Inc. (LECO)

$127.55

-2.31 (-1.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 81.48 | 127.55 | overvalue

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 2,624.433,028.673,003.272,655.403,234.183,434.523,647.273,873.194,113.114,367.90
Revenue (%)
EBITDA 458.60458.64473.42366.48428.24518.09550.18584.26620.45658.88
EBITDA (%)
EBIT 390.48386.30391.93285.98347.10427.16453.62481.72511.55543.24
EBIT (%)
Depreciation 68.1272.3581.4980.4981.1590.9396.56102.54108.90115.64
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 505.83358.85199.56257.28192.96366.96389.69413.83439.46466.68
Total Cash (%)
Account Receivables 395.28396.89374.65373.49429.07466.91495.83526.54559.16593.79
Account Receivables (%)
Inventories 348.67361.83393.75381.26539.92476.68506.20537.56570.86606.22
Inventories (%)
Accounts Payable 269.76268.60273256.53330.23330.46350.93372.67395.76420.27
Accounts Payable (%)
Capital Expenditure -61.66-71.25-69.62-59.20-62.53-76.81-81.57-86.62-91.99-97.69
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 127.55
Beta 1.166
Diluted Shares Outstanding 60.06
Cost of Debt
Tax Rate 14.93
After-tax Cost of Debt 2.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.200
Total Debt 769.82
Total Equity 7,660.91
Total Capital 8,430.73
Debt Weighting 9.13
Equity Weighting 90.87
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 2,624.433,028.673,003.272,655.403,234.183,434.523,647.273,873.194,113.114,367.90
EBITDA 458.60458.64473.42366.48428.24518.09550.18584.26620.45658.88
EBIT 390.48386.30391.93285.98347.10427.16453.62481.72511.55543.24
Tax Rate 32.42%22.13%20.46%21.94%14.93%22.38%22.38%22.38%22.38%22.38%
EBIAT 263.89300.80311.75223.24295.27331.58352.11373.93397.09421.69
Depreciation 68.1272.3581.4980.4981.1590.9396.56102.54108.90115.64
Accounts Receivable --1.6122.241.16-55.59-37.83-28.92-30.71-32.62-34.64
Inventories --13.16-31.9212.49-158.6663.24-29.53-31.36-33.30-35.36
Accounts Payable --1.164.40-16.4773.700.2320.4721.7423.0824.51
Capital Expenditure -61.66-71.25-69.61-59.20-62.53-76.81-81.57-86.62-91.99-97.69
UFCF 270.35285.97318.35241.72173.33371.34329.13349.51371.16394.16
WACC
PV UFCF 341.99279.17273.03267.03261.17
SUM PV UFCF 1,422.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.58
Free cash flow (t + 1) 402.04
Terminal Value 6,110.01
Present Value of Terminal Value 4,048.49

Intrinsic Value

Enterprise Value 5,470.88
Net Debt 576.86
Equity Value 4,894.02
Shares Outstanding 60.06
Equity Value Per Share 81.48