Discounted Cash Flow (DCF) Analysis Unlevered

Linamar Corporation (LNR.TO)

$64.91

+0.25 (+0.39%)

All numbers are in Millions, Currency in USD

Stock DCF: 106.98 | 64.91 | 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	7,620.58	7,416.62	5,815.57	6,536.57	7,917.91	8,101.34	8,289.02	8,481.04	8,677.51	8,878.54
Revenue (%)
EBITDA	1,166.37	1,063.45	889.23	1,023.17	982.52	1,182.74	1,210.14	1,238.17	1,266.85	1,296.20
EBITDA (%)
EBIT	807.55	660.93	434.60	574.41	541.55	690.37	706.37	722.73	739.47	756.60
EBIT (%)
Depreciation	358.82	402.52	454.62	448.75	440.97	492.36	503.77	515.44	527.38	539.60
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	471.98	338.23	861.10	928.43	860.51	820.38	839.38	858.83	878.72	899.08
Total Cash (%)
Account Receivables	1,452.72	1,153.56	963.30	937.62	1,262	1,319.93	1,350.51	1,381.79	1,413.80	1,446.56
Account Receivables (%)
Inventories	1,218.96	991.76	864.16	1,066.46	1,509.30	1,289.80	1,319.68	1,350.25	1,381.53	1,413.54
Inventories (%)
Accounts Payable	912.02	772.31	865.50	984.49	1,231.47	1,099.80	1,125.28	1,151.35	1,178.02	1,205.31
Accounts Payable (%)
Capital Expenditure	-558.03	-558.97	-291.65	-254.54	-423.25	-471.73	-482.65	-493.83	-505.27	-516.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 64.91
Beta	1.461
Diluted Shares Outstanding	63.93
Cost of Debt
Tax Rate	24.31
After-tax Cost of Debt	1.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.494
Total Debt	1,308.37
Total Equity	4,149.87
Total Capital	5,458.24
Debt Weighting	23.97
Equity Weighting	76.03
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	7,620.58	7,416.62	5,815.57	6,536.57	7,917.91	8,101.34	8,289.02	8,481.04	8,677.51	8,878.54
EBITDA	1,166.37	1,063.45	889.23	1,023.17	982.52	1,182.74	1,210.14	1,238.17	1,266.85	1,296.20
EBIT	807.55	660.93	434.60	574.41	541.55	690.37	706.37	722.73	739.47	756.60
Tax Rate	22.13%	23.74%	25.44%	25.19%	24.31%	24.16%	24.16%	24.16%	24.16%	24.16%
EBIAT	628.86	504.05	324.03	429.72	409.89	523.57	535.70	548.11	560.81	573.80
Depreciation	358.82	402.52	454.62	448.75	440.97	492.36	503.77	515.44	527.38	539.60
Accounts Receivable	-	299.16	190.25	25.68	-324.37	-57.93	-30.58	-31.29	-32.01	-32.75
Inventories	-	227.20	127.60	-202.30	-442.85	219.50	-29.88	-30.57	-31.28	-32
Accounts Payable	-	-139.71	93.19	118.99	246.98	-131.67	25.48	26.07	26.67	27.29
Capital Expenditure	-558.03	-558.97	-291.65	-254.54	-423.25	-471.73	-482.65	-493.83	-505.27	-516.98
UFCF	429.64	734.25	898.05	566.30	-92.63	574.11	521.84	533.93	546.29	558.95
WACC
PV UFCF						526.08	438.17	410.82	385.17	361.12
SUM PV UFCF										2,121.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.13
Free cash flow (t + 1)	570.13
Terminal Value	7,996.20
Present Value of Terminal Value	5,166.10

Intrinsic Value

Enterprise Value	7,287.46
Net Debt	447.86
Equity Value	6,839.60
Shares Outstanding	63.93
Equity Value Per Share	106.98