Discounted Cash Flow (DCF) Analysis Unlevered

RBC Bearings Incorporated (RBC)

$208.27

+8.76 (+4.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 11.03 | 208.27 | overvalue

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 674.95702.52727.46608.98942.941,051.811,173.261,308.741,459.851,628.41
Revenue (%)
EBITDA 155.72160.92187.31144.23182.75241.48269.36300.46335.16373.85
EBITDA (%)
EBIT 127.36131.26155.89111.49117.22188.74210.53234.84261.96292.21
EBIT (%)
Depreciation 28.3629.6631.4232.7465.5352.7458.8365.6273.1981.65
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 54.1629.88103.26241.34182.86179.85200.61223.78249.62278.44
Total Cash (%)
Account Receivables 116.89130.73131.60110.47247.49207.01230.91257.57287.31320.49
Account Receivables (%)
Inventories 306.12335367.49364.15516.14542.93605.62675.55753.55840.56
Inventories (%)
Accounts Payable 45.1949.5951.0436.34158.6191.63102.21114.01127.17141.86
Accounts Payable (%)
Capital Expenditure -27.98-41.35-37.30-11.77-29.76-42.59-47.51-52.99-59.11-65.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 208.27
Beta 1.426
Diluted Shares Outstanding 27.21
Cost of Debt
Tax Rate 39.52
After-tax Cost of Debt 1.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.471
Total Debt 1,733.08
Total Equity 5,667.91
Total Capital 7,400.99
Debt Weighting 23.42
Equity Weighting 76.58
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 674.95702.52727.46608.98942.941,051.811,173.261,308.741,459.851,628.41
EBITDA 155.72160.92187.31144.23182.75241.48269.36300.46335.16373.85
EBIT 127.36131.26155.89111.49117.22188.74210.53234.84261.96292.21
Tax Rate 27.29%16.57%18.23%18.56%39.52%24.03%24.03%24.03%24.03%24.03%
EBIAT 92.60109.51127.4790.8070.90143.38159.93178.40199221.98
Depreciation 28.3629.6631.4232.7465.5352.7458.8365.6273.1981.65
Accounts Receivable --13.84-0.8621.13-137.0240.48-23.90-26.66-29.74-33.17
Inventories --28.88-32.493.35-151.99-26.79-62.69-69.93-78-87.01
Accounts Payable -4.401.45-14.70122.27-66.9810.5811.8013.1614.68
Capital Expenditure -27.98-41.35-37.30-11.77-29.76-42.59-47.51-52.99-59.11-65.94
UFCF 92.9859.5089.68121.54-60.07100.2495.24106.23118.50132.18
WACC
PV UFCF 92.5081.1183.4985.9588.48
SUM PV UFCF 431.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.36
Free cash flow (t + 1) 134.83
Terminal Value 2,119.91
Present Value of Terminal Value 1,418.97

Intrinsic Value

Enterprise Value 1,850.50
Net Debt 1,550.22
Equity Value 300.28
Shares Outstanding 27.21
Equity Value Per Share 11.03