Discounted Cash Flow (DCF) Analysis Unlevered

La-Z-Boy Incorporated (LZB)

$29.8

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 83.59 | 29.8 | 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	1,583.95	1,745.40	1,703.98	1,734.24	2,356.81	2,624.87	2,923.41	3,255.91	3,626.22	4,038.65
Revenue (%)
EBITDA	160.47	126.45	213.81	244.83	316.79	301.76	336.09	374.31	416.88	464.30
EBITDA (%)
EBIT	128.70	95.30	114.95	146.24	204.07	196.46	218.80	243.69	271.40	302.27
EBIT (%)
Depreciation	31.77	31.15	98.87	98.59	112.71	105.31	117.28	130.62	145.48	162.03
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	134.52	129.82	261.55	391.21	245.59	337.34	375.71	418.44	466.03	519.03
Total Cash (%)
Account Receivables	154.06	143.29	99.35	139.34	183.75	207.87	231.52	257.85	287.18	319.84
Account Receivables (%)
Inventories	184.84	196.90	181.64	226.14	303.19	312.44	347.97	387.55	431.63	480.72
Inventories (%)
Accounts Payable	62.40	65.37	55.51	94.15	104.02	109.12	121.53	135.35	150.74	167.89
Accounts Payable (%)
Capital Expenditure	-36.34	-48.43	-46.03	-37.96	-76.58	-69.34	-77.23	-86.01	-95.80	-106.69
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 29.8
Beta	1.106
Diluted Shares Outstanding	44.29
Cost of Debt
Tax Rate	27.00
After-tax Cost of Debt	0.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.754
Total Debt	430.11
Total Equity	1,319.96
Total Capital	1,750.08
Debt Weighting	24.58
Equity Weighting	75.42
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	1,583.95	1,745.40	1,703.98	1,734.24	2,356.81	2,624.87	2,923.41	3,255.91	3,626.22	4,038.65
EBITDA	160.47	126.45	213.81	244.83	316.79	301.76	336.09	374.31	416.88	464.30
EBIT	128.70	95.30	114.95	146.24	204.07	196.46	218.80	243.69	271.40	302.27
Tax Rate	37.26%	28.06%	32.74%	27.04%	27.00%	30.42%	30.42%	30.42%	30.42%	30.42%
EBIAT	80.75	68.56	77.32	106.70	148.98	136.70	152.24	169.56	188.85	210.32
Depreciation	31.77	31.15	98.87	98.59	112.71	105.31	117.28	130.62	145.48	162.03
Accounts Receivable	-	10.77	43.94	-39.99	-44.41	-24.13	-23.64	-26.33	-29.33	-32.66
Inventories	-	-12.06	15.26	-44.49	-77.05	-9.24	-35.54	-39.58	-44.08	-49.09
Accounts Payable	-	2.96	-9.85	38.64	9.87	5.09	12.41	13.82	15.39	17.15
Capital Expenditure	-36.34	-48.43	-46.03	-37.96	-76.58	-69.34	-77.23	-86.01	-95.80	-106.69
UFCF	76.18	52.94	179.49	121.48	73.53	144.38	145.53	162.08	180.52	201.05
WACC
PV UFCF						135.39	127.97	133.65	139.59	145.78
SUM PV UFCF										682.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.64
Free cash flow (t + 1)	205.07
Terminal Value	4,419.67
Present Value of Terminal Value	3,204.71

Intrinsic Value

Enterprise Value	3,887.10
Net Debt	184.53
Equity Value	3,702.58
Shares Outstanding	44.29
Equity Value Per Share	83.59