Discounted Cash Flow (DCF) Analysis Unlevered

Phibro Animal Health Corporation (PAHC)

$11.24

+1.37 (+13.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.86 | 11.24 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	828	800.40	833.40	942.30	977.89	1,021	1,066.01	1,113	1,162.07	1,213.29
Revenue (%)
EBITDA	83.40	69.20	74.90	79	108.49	96.35	100.60	105.03	109.66	114.49
EBITDA (%)
EBIT	55.84	36.86	43.01	46.30	74.48	59.30	61.91	64.64	67.49	70.47
EBIT (%)
Depreciation	27.56	32.34	31.89	32.71	34.01	37.05	38.68	40.39	42.17	44.03
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	81.57	91.34	93.21	91.25	81.28	103.01	107.55	112.29	117.24	122.41
Total Cash (%)
Account Receivables	159.02	126.52	146.85	166.54	163.48	177.70	185.54	193.72	202.26	211.17
Account Receivables (%)
Inventories	198.32	196.66	216.31	259.16	277.57	266.20	277.94	290.19	302.98	316.34
Inventories (%)
Accounts Payable	73.19	66.09	68.36	95.60	73.85	87.80	91.67	95.71	99.93	104.33
Accounts Payable (%)
Capital Expenditure	-29.89	-34.04	-29.32	-37.04	-51.79	-42.08	-43.94	-45.88	-47.90	-50.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 11.24
Beta	0.683
Diluted Shares Outstanding	40.50
Cost of Debt
Tax Rate	39.70
After-tax Cost of Debt	2.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.462
Total Debt	509.97
Total Equity	455.26
Total Capital	965.23
Debt Weighting	52.83
Equity Weighting	47.17
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	828	800.40	833.40	942.30	977.89	1,021	1,066.01	1,113	1,162.07	1,213.29
EBITDA	83.40	69.20	74.90	79	108.49	96.35	100.60	105.03	109.66	114.49
EBIT	55.84	36.86	43.01	46.30	74.48	59.30	61.91	64.64	67.49	70.47
Tax Rate	23.50%	39.46%	18.20%	31.95%	39.70%	30.56%	30.56%	30.56%	30.56%	30.56%
EBIAT	42.72	22.31	35.19	31.50	44.91	41.18	42.99	44.89	46.87	48.93
Depreciation	27.56	32.34	31.89	32.71	34.01	37.05	38.68	40.39	42.17	44.03
Accounts Receivable	-	32.50	-20.33	-19.68	3.06	-14.23	-7.83	-8.18	-8.54	-8.92
Inventories	-	1.66	-19.65	-42.85	-18.41	11.37	-11.74	-12.25	-12.79	-13.36
Accounts Payable	-	-7.10	2.27	27.23	-21.74	13.95	3.87	4.04	4.22	4.41
Capital Expenditure	-29.89	-34.05	-29.32	-37.04	-51.79	-42.08	-43.94	-45.88	-47.90	-50.01
UFCF	40.39	47.68	0.04	-8.13	-9.97	47.23	22.04	23.01	24.02	25.08
WACC
PV UFCF						45.04	20.04	19.95	19.86	19.77
SUM PV UFCF										124.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.87
Free cash flow (t + 1)	25.58
Terminal Value	891.41
Present Value of Terminal Value	702.79

Intrinsic Value

Enterprise Value	827.45
Net Debt	468.69
Equity Value	358.76
Shares Outstanding	40.50
Equity Value Per Share	8.86