Discounted Cash Flow (DCF) Analysis Unlevered

Leon's Furniture Limited (LNF.TO)

$19.36

+0.25 (+1.31%)

All numbers are in Millions, Currency in USD

Stock DCF: 81.61 | 19.36 | undervalue

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	2,241.44	2,283.41	2,220.18	2,512.67	2,517.66	2,596.19	2,677.16	2,760.66	2,846.77	2,935.56
Revenue (%)
EBITDA	191.22	294.29	348.79	406.91	369.19	353.02	364.03	375.38	387.09	399.17
EBITDA (%)
EBIT	154.07	171.60	237.50	294.90	259.23	244.66	252.29	260.16	268.27	276.64
EBIT (%)
Depreciation	37.16	122.70	111.29	112.01	109.97	108.36	111.74	115.23	118.82	122.53
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	178.89	197.18	490.83	489.95	225.96	348.92	359.80	371.02	382.59	394.53
Total Cash (%)
Account Receivables	130.54	144.11	134.85	162.33	188.71	167.01	172.22	177.59	183.13	188.85
Account Receivables (%)
Inventories	329.32	334.44	332.07	395.65	410.61	396.44	408.81	421.56	434.71	448.27
Inventories (%)
Accounts Payable	203.60	134.01	171.62	145.30	141.20	176.92	182.44	188.13	194	200.05
Accounts Payable (%)
Capital Expenditure	-20.79	-34.17	-44.49	-16.40	-27.84	-32.12	-33.12	-34.15	-35.22	-36.32
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 19.36
Beta	0.637
Diluted Shares Outstanding	68.16
Cost of Debt
Tax Rate	24.04
After-tax Cost of Debt	3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.565
Total Debt	557.23
Total Equity	1,319.67
Total Capital	1,876.90
Debt Weighting	29.69
Equity Weighting	70.31
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	2,241.44	2,283.41	2,220.18	2,512.67	2,517.66	2,596.19	2,677.16	2,760.66	2,846.77	2,935.56
EBITDA	191.22	294.29	348.79	406.91	369.19	353.02	364.03	375.38	387.09	399.17
EBIT	154.07	171.60	237.50	294.90	259.23	244.66	252.29	260.16	268.27	276.64
Tax Rate	26.27%	25.25%	22.44%	25.05%	24.04%	24.61%	24.61%	24.61%	24.61%	24.61%
EBIAT	113.59	128.27	184.20	221.04	196.90	184.45	190.20	196.13	202.25	208.56
Depreciation	37.16	122.70	111.29	112.01	109.97	108.36	111.74	115.23	118.82	122.53
Accounts Receivable	-	-13.57	9.27	-27.49	-26.37	21.70	-5.21	-5.37	-5.54	-5.71
Inventories	-	-5.13	2.37	-63.57	-14.97	14.17	-12.37	-12.75	-13.15	-13.56
Accounts Payable	-	-69.59	37.60	-26.32	-4.10	35.72	5.52	5.69	5.87	6.05
Capital Expenditure	-20.79	-34.17	-44.49	-16.40	-27.84	-32.12	-33.12	-34.15	-35.22	-36.32
UFCF	129.96	128.51	300.24	199.28	233.59	332.28	256.77	264.77	273.03	281.55
WACC
PV UFCF						312.38	226.93	220	213.27	206.76
SUM PV UFCF										1,179.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.37
Free cash flow (t + 1)	287.18
Terminal Value	6,571.61
Present Value of Terminal Value	4,825.88

Intrinsic Value

Enterprise Value	6,005.21
Net Debt	442.10
Equity Value	5,563.11
Shares Outstanding	68.16
Equity Value Per Share	81.61