Discounted Cash Flow (DCF) Analysis Unlevered

Resideo Technologies, Inc. (REZI)

$19.27

+0.12 (+0.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.56 | 19.27 | 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 4,5194,8274,9885,0715,8466,242.046,664.917,116.427,598.528,113.29
Revenue (%)
EBITDA 236170220250489330.20352.57376.45401.95429.19
EBITDA (%)
EBIT 169104140164401234.63250.53267.50285.62304.97
EBIT (%)
Depreciation 676680868895.57102.04108.95116.33124.21
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 56265122517779408.17435.83465.35496.88530.54
Total Cash (%)
Account Receivables 8028218178638761,037.901,108.211,183.291,263.451,349.05
Account Receivables (%)
Inventories 465628671672740782.28835.28891.86952.281,016.80
Inventories (%)
Accounts Payable 6789649209368831,085.881,159.441,237.981,321.851,411.40
Accounts Payable (%)
Capital Expenditure -49-81-95-70-63-88.95-94.97-101.41-108.28-115.61
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 19.27
Beta 2.174
Diluted Shares Outstanding 126.32
Cost of Debt
Tax Rate 31.44
After-tax Cost of Debt 2.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.960
Total Debt 1,230
Total Equity 2,434.26
Total Capital 3,664.26
Debt Weighting 33.57
Equity Weighting 66.43
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 4,5194,8274,9885,0715,8466,242.046,664.917,116.427,598.528,113.29
EBITDA 236170220250489330.20352.57376.45401.95429.19
EBIT 169104140164401234.63250.53267.50285.62304.97
Tax Rate 337.35%-289.42%49.30%63.37%31.44%38.41%38.41%38.41%38.41%38.41%
EBIAT -401.1240570.9960.08274.91144.52154.31164.76175.92187.84
Depreciation 676680868895.57102.04108.95116.33124.21
Accounts Receivable --194-46-13-161.90-70.31-75.08-80.16-85.59
Inventories --163-43-1-68-42.28-53-56.59-60.42-64.51
Accounts Payable -286-4416-53202.8873.5678.5583.8789.55
Capital Expenditure -49-81-95-70-63-88.95-94.97-101.41-108.28-115.61
UFCF -383.12494-27.0145.08165.91149.83111.63119.19127.26135.89
WACC
PV UFCF 13691.9789.1386.3983.73
SUM PV UFCF 487.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.17
Free cash flow (t + 1) 138.60
Terminal Value 1,696.49
Present Value of Terminal Value 1,045.29

Intrinsic Value

Enterprise Value 1,532.50
Net Debt 451
Equity Value 1,081.50
Shares Outstanding 126.32
Equity Value Per Share 8.56