Discounted Cash Flow (DCF) Analysis Unlevered

McGrath RentCorp (MGRC)

$85.9

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 78.28 | 85.9 | overvalue

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 462.03498.33570.23572.55616.83663.75714.24768.56827.02889.93
Revenue (%)
EBITDA 173.49198.97230.93235.47238.91262.62282.60304.09327.22352.11
EBITDA (%)
EBIT 95.07116.99141.46140.83132.21152.52164.12176.60190.04204.49
EBIT (%)
Depreciation 78.4281.9889.4894.64106.69110.10118.48127.49137.19147.62
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 2.501.512.341.241.492.272.452.632.833.05
Total Cash (%)
Account Receivables 105.87121.02128.10123.32159.50155.40167.22179.93193.62208.35
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -109.20-138.74-179.78-100.05-116.83-158.53-170.58-183.56-197.52-212.54
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 85.9
Beta 0.805
Diluted Shares Outstanding 24.51
Cost of Debt
Tax Rate 26.32
After-tax Cost of Debt 1.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.611
Total Debt 426.45
Total Equity 2,105.15
Total Capital 2,531.60
Debt Weighting 16.85
Equity Weighting 83.15
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 462.03498.33570.23572.55616.83663.75714.24768.56827.02889.93
EBITDA 173.49198.97230.93235.47238.91262.62282.60304.09327.22352.11
EBIT 95.07116.99141.46140.83132.21152.52164.12176.60190.04204.49
Tax Rate -84.44%24.15%25.03%22.77%26.32%2.77%2.77%2.77%2.77%2.77%
EBIAT 175.3688.73106.05108.7797.41148.30159.58171.72184.78198.83
Depreciation 78.4281.9889.4894.64106.69110.10118.48127.49137.19147.62
Accounts Receivable --15.14-7.084.78-36.184.10-11.82-12.72-13.69-14.73
Inventories ----------
Accounts Payable ----------
Capital Expenditure -109.20-138.74-179.78-100.05-116.83-158.53-170.58-183.56-197.52-212.54
UFCF 144.5816.838.66108.1451.09103.9895.65102.93110.76119.18
WACC
PV UFCF 97.5284.1384.9085.6886.46
SUM PV UFCF 438.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.63
Free cash flow (t + 1) 121.57
Terminal Value 2,625.67
Present Value of Terminal Value 1,904.77

Intrinsic Value

Enterprise Value 2,343.45
Net Debt 424.96
Equity Value 1,918.49
Shares Outstanding 24.51
Equity Value Per Share 78.28