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 7,620.587,416.625,815.576,536.577,917.918,101.348,289.028,481.048,677.518,878.54
Revenue (%)
EBITDA 1,166.371,063.45889.231,023.17982.521,182.741,210.141,238.171,266.851,296.20
EBITDA (%)
EBIT 807.55660.93434.60574.41541.55690.37706.37722.73739.47756.60
EBIT (%)
Depreciation 358.82402.52454.62448.75440.97492.36503.77515.44527.38539.60
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 471.98338.23861.10928.43860.51820.38839.38858.83878.72899.08
Total Cash (%)
Account Receivables 1,452.721,153.56963.30937.621,2621,319.931,350.511,381.791,413.801,446.56
Account Receivables (%)
Inventories 1,218.96991.76864.161,066.461,509.301,289.801,319.681,350.251,381.531,413.54
Inventories (%)
Accounts Payable 912.02772.31865.50984.491,231.471,099.801,125.281,151.351,178.021,205.31
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 7,620.587,416.625,815.576,536.577,917.918,101.348,289.028,481.048,677.518,878.54
EBITDA 1,166.371,063.45889.231,023.17982.521,182.741,210.141,238.171,266.851,296.20
EBIT 807.55660.93434.60574.41541.55690.37706.37722.73739.47756.60
Tax Rate 22.13%23.74%25.44%25.19%24.31%24.16%24.16%24.16%24.16%24.16%
EBIAT 628.86504.05324.03429.72409.89523.57535.70548.11560.81573.80
Depreciation 358.82402.52454.62448.75440.97492.36503.77515.44527.38539.60
Accounts Receivable -299.16190.2525.68-324.37-57.93-30.58-31.29-32.01-32.75
Inventories -227.20127.60-202.30-442.85219.50-29.88-30.57-31.28-32
Accounts Payable --139.7193.19118.99246.98-131.6725.4826.0726.6727.29
Capital Expenditure -558.03-558.97-291.65-254.54-423.25-471.73-482.65-493.83-505.27-516.98
UFCF 429.64734.25898.05566.30-92.63574.11521.84533.93546.29558.95
WACC
PV UFCF 526.08438.17410.82385.17361.12
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