Discounted Cash Flow (DCF) Analysis Unlevered

Linamar Corporation (LNR.TO)

$67.73

+1.33 (+2.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 95.35 | 67.73 | 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 6,546.467,620.587,416.625,815.576,536.576,610.796,685.856,761.776,838.546,916.19
Revenue (%)
EBITDA 1,041.731,186.821,035.65873.151,029.361,007.651,019.091,030.661,042.361,054.20
EBITDA (%)
EBIT 721.95828633.13418.53580.60614.92621.91628.97636.11643.33
EBIT (%)
Depreciation 319.78358.82402.52454.63448.75392.72397.18401.69406.25410.87
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 439.06471.98338.23861.10928.43614.42621.40628.45635.59642.81
Total Cash (%)
Account Receivables 1,0831,286988888871996.041,007.351,018.791,030.361,042.05
Account Receivables (%)
Inventories 791.671,218.96991.76864.161,066.46960.35971.26982.29993.441,004.72
Inventories (%)
Accounts Payable 782.44912.02772.31865.50984.49849.84859.49869.25879.12889.10
Accounts Payable (%)
Capital Expenditure -427.40-558.03-558.97-291.65-254.54-400.58-405.13-409.72-414.38-419.08
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 67.73
Beta 1.391
Diluted Shares Outstanding 65.57
Cost of Debt
Tax Rate 25.19
After-tax Cost of Debt 1.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.302
Total Debt 791.54
Total Equity 4,440.94
Total Capital 5,232.49
Debt Weighting 15.13
Equity Weighting 84.87
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 6,546.467,620.587,416.625,815.576,536.576,610.796,685.856,761.776,838.546,916.19
EBITDA 1,041.731,186.821,035.65873.151,029.361,007.651,019.091,030.661,042.361,054.20
EBIT 721.95828633.13418.53580.60614.92621.91628.97636.11643.33
Tax Rate 20.68%22.13%23.74%25.44%25.19%23.43%23.43%23.43%23.43%23.43%
EBIAT 572.69644.79482.85312.05434.35470.82476.17481.57487.04492.57
Depreciation 319.78358.82402.52454.63448.75392.72397.18401.69406.25410.87
Accounts Receivable --20329810017-125.04-11.31-11.44-11.57-11.70
Inventories --427.29227.20127.60-202.30106.10-10.90-11.03-11.15-11.28
Accounts Payable -129.58-139.7193.19118.99-134.649.659.769.879.98
Capital Expenditure -427.40-558.03-558.97-291.65-254.54-400.58-405.13-409.72-414.38-419.08
UFCF 465.07-55.13711.89795.82562.25309.39455.66460.84466.07471.36
WACC
PV UFCF 283.81383.45355.75330.05306.21
SUM PV UFCF 1,659.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.01
Free cash flow (t + 1) 480.79
Terminal Value 6,858.59
Present Value of Terminal Value 4,455.57

Intrinsic Value

Enterprise Value 6,114.85
Net Debt -136.88
Equity Value 6,251.74
Shares Outstanding 65.57
Equity Value Per Share 95.35