Discounted Cash Flow (DCF) Analysis Unlevered
Reynolds Consumer Products Inc. (REYN)
$27.5
+0.33 (+1.21%)
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 | 3,142 | 3,032 | 3,263 | 3,556 | 3,817 | 4,012.02 | 4,217 | 4,432.46 | 4,658.92 | 4,896.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 651 | 633 | 681 | 279 | 531 | 675.82 | 710.35 | 746.64 | 784.79 | 824.89 |
| EBITDA (%) | ||||||||||
| EBIT | 564 | 542 | 582 | 170 | 414 | 555.98 | 584.39 | 614.25 | 645.63 | 678.62 |
| EBIT (%) | ||||||||||
| Depreciation | 87 | 91 | 99 | 109 | 117 | 119.84 | 125.96 | 132.40 | 139.16 | 146.27 |
| 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 | 23 | 102 | 312 | 164 | 38 | 154.59 | 162.48 | 170.79 | 179.51 | 188.68 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 58 | 35 | 309 | 328 | 363 | 250.38 | 263.18 | 276.62 | 290.75 | 305.61 |
| Account Receivables (%) | ||||||||||
| Inventories | 429 | 418 | 419 | 583 | 722 | 606.55 | 637.54 | 670.11 | 704.35 | 740.33 |
| Inventories (%) | ||||||||||
| Accounts Payable | 136 | 135 | 185 | 261 | 252 | 227.82 | 239.46 | 251.70 | 264.56 | 278.07 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -82 | -109 | -143 | -141 | -128 | -143.68 | -151.02 | -158.73 | -166.84 | -175.37 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 27.5 |
|---|---|
| Beta | 0.469 |
| Diluted Shares Outstanding | 209.90 |
| Cost of Debt | |
| Tax Rate | 23.67 |
| After-tax Cost of Debt | 2.65% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.709 |
| Total Debt | 2,192 |
| Total Equity | 5,772.25 |
| Total Capital | 7,964.25 |
| Debt Weighting | 27.52 |
| Equity Weighting | 72.48 |
| 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 | 3,142 | 3,032 | 3,263 | 3,556 | 3,817 | 4,012.02 | 4,217 | 4,432.46 | 4,658.92 | 4,896.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 651 | 633 | 681 | 279 | 531 | 675.82 | 710.35 | 746.64 | 784.79 | 824.89 |
| EBIT | 564 | 542 | 582 | 170 | 414 | 555.98 | 584.39 | 614.25 | 645.63 | 678.62 |
| Tax Rate | 24.46% | 25.25% | 29.65% | 24.65% | 23.67% | 25.54% | 25.54% | 25.54% | 25.54% | 25.54% |
| EBIAT | 426.03 | 405.15 | 409.43 | 128.09 | 316.01 | 414 | 435.15 | 457.39 | 480.76 | 505.32 |
| Depreciation | 87 | 91 | 99 | 109 | 117 | 119.84 | 125.96 | 132.40 | 139.16 | 146.27 |
| Accounts Receivable | - | 23 | -274 | -19 | -35 | 112.62 | -12.79 | -13.45 | -14.13 | -14.86 |
| Inventories | - | 11 | -1 | -164 | -139 | 115.45 | -30.99 | -32.57 | -34.24 | -35.99 |
| Accounts Payable | - | -1 | 50 | 76 | -9 | -24.18 | 11.64 | 12.23 | 12.86 | 13.52 |
| Capital Expenditure | -82 | -109 | -143 | -141 | -128 | -143.68 | -151.02 | -158.73 | -166.84 | -175.37 |
| UFCF | 431.03 | 420.15 | 140.43 | -10.91 | 122.01 | 594.05 | 377.95 | 397.26 | 417.56 | 438.90 |
| WACC | ||||||||||
| PV UFCF | 566.47 | 343.67 | 344.45 | 345.24 | 346.02 | |||||
| SUM PV UFCF | 1,945.84 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.87 |
| Free cash flow (t + 1) | 447.67 |
| Terminal Value | 15,598.41 |
| Present Value of Terminal Value | 12,297.70 |
Intrinsic Value
| Enterprise Value | 14,243.54 |
|---|---|
| Net Debt | 2,154 |
| Equity Value | 12,089.54 |
| Shares Outstanding | 209.90 |
| Equity Value Per Share | 57.60 |