Discounted Cash Flow (DCF) Analysis Unlevered

Richelieu Hardware Ltd. (RCH.TO)

$39.02

+0.11 (+0.28%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.70 | 39.02 | 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 942.541,004.401,041.651,127.841,440.421,6071,792.852,000.202,231.522,489.59
Revenue (%)
EBITDA 102.75105.80109.31154.07233.83198.70221.68247.32275.92307.83
EBITDA (%)
EBIT 91.2992.6093.84120.05196.87167.86187.27208.93233.09260.05
EBIT (%)
Depreciation 11.4513.2015.4734.0236.9630.8534.4138.3942.8347.79
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 29.167.4124.7073.9358.7154.1060.3667.3475.1383.82
Total Cash (%)
Account Receivables 134.19138.77138.93156.91199.59222.27247.98276.66308.65344.35
Account Receivables (%)
Inventories 233.58270.27275.15287.34395.46421.16469.87524.21584.83652.47
Inventories (%)
Accounts Payable 91.8688.3690.14120.19155.01156.25174.32194.48216.97242.06
Accounts Payable (%)
Capital Expenditure -13.12-12.37-10.56-12.44-17.05-19.04-21.24-23.70-26.44-29.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 39.02
Beta 1.112
Diluted Shares Outstanding 56.31
Cost of Debt
Tax Rate 27.20
After-tax Cost of Debt 1.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.037
Total Debt 99.49
Total Equity 2,197.41
Total Capital 2,296.90
Debt Weighting 4.33
Equity Weighting 95.67
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 942.541,004.401,041.651,127.841,440.421,6071,792.852,000.202,231.522,489.59
EBITDA 102.75105.80109.31154.07233.83198.70221.68247.32275.92307.83
EBIT 91.2992.6093.84120.05196.87167.86187.27208.93233.09260.05
Tax Rate 26.18%26.91%27.67%27.63%27.20%27.12%27.12%27.12%27.12%27.12%
EBIAT 67.3967.6967.8786.88143.32122.34136.48152.27169.88189.53
Depreciation 11.4513.2015.4734.0236.9630.8534.4138.3942.8347.79
Accounts Receivable --4.58-0.16-17.98-42.68-22.69-25.71-28.68-32-35.70
Inventories --36.69-4.88-12.19-108.12-25.70-48.71-54.34-60.62-67.64
Accounts Payable --3.501.7830.0534.821.2418.0720.1622.4925.09
Capital Expenditure -13.12-12.37-10.56-12.44-17.05-19.04-21.24-23.70-26.44-29.50
UFCF 65.7323.7569.53108.3447.248793.31104.10116.14129.57
WACC
PV UFCF 80.7280.3483.1786.1089.13
SUM PV UFCF 419.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.77
Free cash flow (t + 1) 132.17
Terminal Value 2,290.57
Present Value of Terminal Value 1,575.63

Intrinsic Value

Enterprise Value 1,995.10
Net Debt 40.79
Equity Value 1,954.31
Shares Outstanding 56.31
Equity Value Per Share 34.70