Discounted Cash Flow (DCF) Analysis Unlevered

Methode Electronics, Inc. (MEI)

$44

-0.40 (-0.90%)
All numbers are in Millions, Currency in USD
Stock DCF: 51.78 | 44 | 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 908.301,000.301,023.901,0881,163.601,238.351,317.911,402.571,492.681,588.57
Revenue (%)
EBITDA 151138.60207.10191.60174.60206.36219.62233.73248.75264.73
EBITDA (%)
EBIT 122.9095.30158.80140.10122153.38163.23173.72184.88196.76
EBIT (%)
Depreciation 28.1043.3048.3051.5052.6052.9956.3960.0163.8767.97
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 246.1083.20217.30233.20172229.96244.74260.46277.19295
Total Cash (%)
Account Receivables 202.60233.60201.40294281.60288.66307.21326.94347.95370.30
Account Receivables (%)
Inventories 84.10116.70131124.20158.50145.52154.87164.82175.41186.68
Inventories (%)
Accounts Payable 89.5091.9073.80122.90108.50116.08123.54131.47139.92148.91
Accounts Payable (%)
Capital Expenditure -48.40-49.80-45.10-24.90-38-50.19-53.42-56.85-60.50-64.39
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 44
Beta 1.117
Diluted Shares Outstanding 37.85
Cost of Debt
Tax Rate 13.76
After-tax Cost of Debt 1.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.049
Total Debt 231.30
Total Equity 1,665.48
Total Capital 1,896.78
Debt Weighting 12.19
Equity Weighting 87.81
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 908.301,000.301,023.901,0881,163.601,238.351,317.911,402.571,492.681,588.57
EBITDA 151138.60207.10191.60174.60206.36219.62233.73248.75264.73
EBIT 122.9095.30158.80140.10122153.38163.23173.72184.88196.76
Tax Rate 53.80%11.58%17.01%9.34%13.76%21.10%21.10%21.10%21.10%21.10%
EBIAT 56.7884.26131.78127.01105.22121.02128.79137.07145.87155.25
Depreciation 28.1043.3048.3051.5052.6052.9956.3960.0163.8767.97
Accounts Receivable --3132.20-92.6012.40-7.06-18.54-19.74-21-22.35
Inventories --32.60-14.306.80-34.3012.98-9.35-9.95-10.59-11.27
Accounts Payable -2.40-18.1049.10-14.407.587.467.948.458.99
Capital Expenditure -48.40-49.80-45.10-24.90-38-50.19-53.42-56.85-60.50-64.39
UFCF 36.4816.56134.78116.9183.52137.31111.33118.48126.09134.19
WACC
PV UFCF 127.0295.2793.7992.3490.91
SUM PV UFCF 499.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.10
Free cash flow (t + 1) 136.88
Terminal Value 2,243.90
Present Value of Terminal Value 1,520.11

Intrinsic Value

Enterprise Value 2,019.44
Net Debt 59.30
Equity Value 1,960.14
Shares Outstanding 37.85
Equity Value Per Share 51.78