Discounted Cash Flow (DCF) Analysis Unlevered

Leon's Furniture Limited (LNF.TO)

$16

-0.09 (-0.56%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.15 | 16 | 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 2,212.222,241.442,283.412,220.182,512.672,598.092,686.422,777.752,872.182,969.82
Revenue (%)
EBITDA 182.94197.14294.43344.19409.14320.84331.75343.02354.68366.74
EBITDA (%)
EBIT 143.38159.99171.73232.90297.13225.80233.48241.42249.62258.11
EBIT (%)
Depreciation 39.5637.16122.70111.29112.0195.0498.27101.61105.06108.63
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 103.53178.89197.18490.83489.95326.86337.97349.46361.34373.62
Total Cash (%)
Account Receivables 140.56130.54144.11134.85162.33161.20166.68172.35178.21184.27
Account Receivables (%)
Inventories 317.91329.32334.44332.07395.65386.66399.81413.40427.45441.99
Inventories (%)
Accounts Payable 200.57203.60134.01171.62145.30195.02201.65208.51215.59222.92
Accounts Payable (%)
Capital Expenditure -56.20-20.79-34.17-44.49-16.40-39.60-40.95-42.34-43.78-45.27
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 16
Beta 0.671
Diluted Shares Outstanding 79.06
Cost of Debt
Tax Rate 25.05
After-tax Cost of Debt 3.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.973
Total Debt 456.25
Total Equity 1,265
Total Capital 1,721.25
Debt Weighting 26.51
Equity Weighting 73.49
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 2,212.222,241.442,283.412,220.182,512.672,598.092,686.422,777.752,872.182,969.82
EBITDA 182.94197.14294.43344.19409.14320.84331.75343.02354.68366.74
EBIT 143.38159.99171.73232.90297.13225.80233.48241.42249.62258.11
Tax Rate 26.51%26.27%25.25%22.44%25.05%25.10%25.10%25.10%25.10%25.10%
EBIAT 105.38117.96128.37180.63222.71169.12174.87180.82186.96193.32
Depreciation 39.5637.16122.70111.29112.0195.0498.27101.61105.06108.63
Accounts Receivable -10.01-13.579.27-27.491.13-5.48-5.67-5.86-6.06
Inventories --11.40-5.132.37-63.578.98-13.15-13.59-14.05-14.53
Accounts Payable -3.03-69.5937.60-26.3249.726.636.867.097.33
Capital Expenditure -56.20-20.79-34.17-44.49-16.40-39.60-40.95-42.34-43.78-45.27
UFCF 88.73135.97128.62296.67200.95284.39220.20227.68235.42243.43
WACC
PV UFCF 268.22195.86191186.27181.64
SUM PV UFCF 1,023

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.03
Free cash flow (t + 1) 248.29
Terminal Value 6,161.15
Present Value of Terminal Value 4,597.46

Intrinsic Value

Enterprise Value 5,620.46
Net Debt 74.12
Equity Value 5,546.34
Shares Outstanding 79.06
Equity Value Per Share 70.15