Discounted Cash Flow (DCF) Analysis Unlevered
LL Flooring Holdings, Inc. (LL)
$3.37
-0.08 (-2.32%)
All numbers are in Millions, Currency in USD
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 | 1,084.64 | 1,092.60 | 1,097.70 | 1,152.34 | 1,110.68 | 1,117.80 | 1,124.96 | 1,132.17 | 1,139.42 | 1,146.73 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | -32.15 | 34.18 | 73.93 | 71.52 | 6.69 | 30.64 | 30.84 | 31.04 | 31.24 | 31.44 |
EBITDA (%) | ||||||||||
EBIT | -50.57 | 16.72 | 56.28 | 52.69 | -11.72 | 12.32 | 12.40 | 12.48 | 12.56 | 12.64 |
EBIT (%) | ||||||||||
Depreciation | 18.43 | 17.47 | 17.64 | 18.83 | 18.41 | 18.32 | 18.44 | 18.56 | 18.68 | 18.80 |
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 | 11.56 | 8.99 | 169.94 | 85.19 | 10.80 | 57.54 | 57.90 | 58.27 | 58.65 | 59.02 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 27.80 | 27.02 | 4.08 | 9.16 | 9.05 | 15.69 | 15.79 | 15.89 | 15.99 | 16.10 |
Account Receivables (%) | ||||||||||
Inventories | 318.27 | 286.37 | 244.41 | 254.38 | 332.30 | 290.21 | 292.07 | 293.94 | 295.82 | 297.72 |
Inventories (%) | ||||||||||
Accounts Payable | 73.41 | 59.83 | 70.54 | 63.46 | 47.73 | 63.66 | 64.07 | 64.48 | 64.89 | 65.31 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -14.33 | -19.91 | -15.83 | -19.44 | -22.05 | -18.46 | -18.58 | -18.70 | -18.82 | -18.94 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 3.37 |
---|---|
Beta | 2.031 |
Diluted Shares Outstanding | 28.86 |
Cost of Debt | |
Tax Rate | 10.76 |
After-tax Cost of Debt | 3.80% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 13.841 |
Total Debt | 205.69 |
Total Equity | 97.26 |
Total Capital | 302.95 |
Debt Weighting | 67.90 |
Equity Weighting | 32.10 |
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 | 1,084.64 | 1,092.60 | 1,097.70 | 1,152.34 | 1,110.68 | 1,117.80 | 1,124.96 | 1,132.17 | 1,139.42 | 1,146.73 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | -32.15 | 34.18 | 73.93 | 71.52 | 6.69 | 30.64 | 30.84 | 31.04 | 31.24 | 31.44 |
EBIT | -50.57 | 16.72 | 56.28 | 52.69 | -11.72 | 12.32 | 12.40 | 12.48 | 12.56 | 12.64 |
Tax Rate | -1.83% | 25.39% | -14.52% | 21.01% | 10.76% | 8.16% | 8.16% | 8.16% | 8.16% | 8.16% |
EBIAT | -51.50 | 12.47 | 64.45 | 41.62 | -10.46 | 11.31 | 11.39 | 11.46 | 11.53 | 11.61 |
Depreciation | 18.43 | 17.47 | 17.64 | 18.83 | 18.41 | 18.32 | 18.44 | 18.56 | 18.68 | 18.80 |
Accounts Receivable | - | 0.77 | 22.95 | -5.08 | 0.11 | -6.64 | -0.10 | -0.10 | -0.10 | -0.10 |
Inventories | - | 31.90 | 41.96 | -9.98 | -77.91 | 42.09 | -1.86 | -1.87 | -1.88 | -1.90 |
Accounts Payable | - | -13.59 | 10.72 | -7.08 | -15.73 | 15.93 | 0.41 | 0.41 | 0.41 | 0.42 |
Capital Expenditure | -14.33 | -19.91 | -15.83 | -19.44 | -22.05 | -18.46 | -18.58 | -18.70 | -18.82 | -18.94 |
UFCF | -47.41 | 29.12 | 141.89 | 18.87 | -107.63 | 62.56 | 9.70 | 9.76 | 9.82 | 9.89 |
WACC | ||||||||||
PV UFCF | 58.45 | 8.47 | 7.96 | 7.49 | 7.04 | |||||
SUM PV UFCF | 89.41 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.02 |
Free cash flow (t + 1) | 10.08 |
Terminal Value | 200.86 |
Present Value of Terminal Value | 143.08 |
Intrinsic Value
Enterprise Value | 232.49 |
---|---|
Net Debt | 194.90 |
Equity Value | 37.60 |
Shares Outstanding | 28.86 |
Equity Value Per Share | 1.30 |