Discounted Cash Flow (DCF) Analysis Unlevered
McGrath RentCorp (MGRC)
$103.01
+1.79 (+1.77%)
All numbers are in Millions, Currency in USD
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 | 498.33 | 570.23 | 572.55 | 616.83 | 733.82 | 810.02 | 894.13 | 986.98 | 1,089.47 | 1,202.60 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 199.46 | 230.85 | 235.40 | 239.12 | 276.91 | 320.97 | 354.30 | 391.08 | 431.69 | 476.52 |
| EBITDA (%) | ||||||||||
| EBIT | 117.48 | 141.37 | 140.75 | 132.42 | 165.57 | 189.51 | 209.19 | 230.91 | 254.89 | 281.36 |
| EBIT (%) | ||||||||||
| Depreciation | 81.98 | 89.48 | 94.64 | 106.69 | 111.34 | 131.45 | 145.10 | 160.17 | 176.80 | 195.16 |
| 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 | 1.51 | 2.34 | 1.24 | 1.49 | 0.96 | 2.11 | 2.33 | 2.57 | 2.84 | 3.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 121.02 | 128.10 | 123.32 | 159.50 | 190.02 | 194.47 | 214.66 | 236.95 | 261.56 | 288.72 |
| Account Receivables (%) | ||||||||||
| Inventories | -31.82 | -36.41 | -36.55 | -39.38 | -46.85 | -51.72 | -57.09 | -63.01 | -69.56 | -76.78 |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -138.74 | -179.78 | -100.05 | -116.83 | -205.31 | -200.50 | -221.32 | -244.30 | -269.67 | -297.67 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 103.01 |
|---|---|
| Beta | 0.743 |
| Diluted Shares Outstanding | 24.52 |
| Cost of Debt | |
| Tax Rate | 23.25 |
| After-tax Cost of Debt | 3.27% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.762 |
| Total Debt | 413.74 |
| Total Equity | 2,525.70 |
| Total Capital | 2,939.44 |
| Debt Weighting | 14.08 |
| Equity Weighting | 85.92 |
| 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 | 498.33 | 570.23 | 572.55 | 616.83 | 733.82 | 810.02 | 894.13 | 986.98 | 1,089.47 | 1,202.60 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 199.46 | 230.85 | 235.40 | 239.12 | 276.91 | 320.97 | 354.30 | 391.08 | 431.69 | 476.52 |
| EBIT | 117.48 | 141.37 | 140.75 | 132.42 | 165.57 | 189.51 | 209.19 | 230.91 | 254.89 | 281.36 |
| Tax Rate | 24.15% | 25.03% | 22.77% | 26.32% | 23.25% | 24.30% | 24.30% | 24.30% | 24.30% | 24.30% |
| EBIAT | 89.10 | 105.99 | 108.71 | 97.56 | 127.07 | 143.45 | 158.35 | 174.79 | 192.94 | 212.98 |
| Depreciation | 81.98 | 89.48 | 94.64 | 106.69 | 111.34 | 131.45 | 145.10 | 160.17 | 176.80 | 195.16 |
| Accounts Receivable | - | -7.08 | 4.78 | -36.18 | -30.52 | -4.45 | -20.19 | -22.29 | -24.60 | -27.16 |
| Inventories | - | 4.59 | 0.15 | 2.83 | 7.47 | 4.86 | 5.37 | 5.93 | 6.54 | 7.22 |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -138.74 | -179.78 | -100.05 | -116.83 | -205.31 | -200.50 | -221.32 | -244.30 | -269.67 | -297.67 |
| UFCF | 32.34 | 13.19 | 108.23 | 54.08 | 10.05 | 74.83 | 67.31 | 74.30 | 82.02 | 90.53 |
| WACC | ||||||||||
| PV UFCF | 69.85 | 58.65 | 60.43 | 62.27 | 64.16 | |||||
| SUM PV UFCF | 315.35 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.13 |
| Free cash flow (t + 1) | 92.34 |
| Terminal Value | 1,800.07 |
| Present Value of Terminal Value | 1,275.66 |
Intrinsic Value
| Enterprise Value | 1,591.01 |
|---|---|
| Net Debt | 412.79 |
| Equity Value | 1,178.22 |
| Shares Outstanding | 24.52 |
| Equity Value Per Share | 48.05 |