Discounted Cash Flow (DCF) Analysis Unlevered

Methode Electronics, Inc. (MEI)

$37.15

-0.49 (-1.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 52.39 | 37.15 | 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 151.90146.90207.10191.60174.60208.67222.07236.34251.52267.68
EBITDA (%)
EBIT 123.80103.60158.80140.10122155.68165.68176.32187.65199.71
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 205233.60201.40294281.60289.32307.90327.68348.74371.14
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 $ 37.15
Beta 1.134
Diluted Shares Outstanding 38.31
Cost of Debt
Tax Rate 13.76
After-tax Cost of Debt 1.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.158
Total Debt 231.30
Total Equity 1,423.08
Total Capital 1,654.38
Debt Weighting 13.98
Equity Weighting 86.02
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 151.90146.90207.10191.60174.60208.67222.07236.34251.52267.68
EBIT 123.80103.60158.80140.10122155.68165.68176.32187.65199.71
Tax Rate 53.80%11.58%17.01%9.34%13.76%21.10%21.10%21.10%21.10%21.10%
EBIAT 57.2091.60131.78127.01105.22122.83130.73139.12148.06157.57
Depreciation 28.1043.3048.3051.5052.6052.9956.3960.0163.8767.97
Accounts Receivable --28.6032.20-92.6012.40-7.72-18.59-19.78-21.05-22.40
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 36.9026.30134.78116.9183.52138.47113.22120.49128.23136.47
WACC
PV UFCF 128.1496.9695.4994.0592.62
SUM PV UFCF 507.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.06
Free cash flow (t + 1) 139.20
Terminal Value 2,297.05
Present Value of Terminal Value 1,559

Intrinsic Value

Enterprise Value 2,066.26
Net Debt 59.30
Equity Value 2,006.96
Shares Outstanding 38.31
Equity Value Per Share 52.39