Discounted Cash Flow (DCF) Analysis Unlevered

Sanderson Farms, Inc. (SAFM)

$204

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -19.72 | 204 | 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 3,342.233,2363,440.263,564.274,799.655,296.405,844.566,449.457,116.957,853.53
Revenue (%)
EBITDA 526.75143.52203.42145.65767.14489.16539.78595.65657.30725.33
EBITDA (%)
EBIT 426.4232.6268-11.10598.91295.64326.24360.01397.27438.38
EBIT (%)
Depreciation 100.34110.90135.42156.75168.23193.51213.54235.64260.03286.94
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 419.28121.1995.4249.06439.34313.48345.93381.73421.24464.83
Total Cash (%)
Account Receivables 138.87162138.83181.52233.34245.24270.62298.63329.53363.64
Account Receivables (%)
Inventories 252.76240.06289.93290.01350.96411.61454.21501.22553.09610.33
Inventories (%)
Accounts Payable 90.90128.94132.74111.46152.42178.65197.14217.55240.06264.91
Accounts Payable (%)
Capital Expenditure -166.77-308.87-249.50-202.44-166.35-327.66-361.57-399-440.29-485.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 204
Beta 0.555
Diluted Shares Outstanding 22.02
Cost of Debt
Tax Rate 23.69
After-tax Cost of Debt 6.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.594
Total Debt 28.31
Total Equity 4,492.28
Total Capital 4,520.60
Debt Weighting 0.63
Equity Weighting 99.37
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 3,342.233,2363,440.263,564.274,799.655,296.405,844.566,449.457,116.957,853.53
EBITDA 526.75143.52203.42145.65767.14489.16539.78595.65657.30725.33
EBIT 426.4232.6268-11.10598.91295.64326.24360.01397.27438.38
Tax Rate 34.10%-101.04%16.53%273.34%23.69%49.33%49.33%49.33%49.33%49.33%
EBIAT 280.9965.5856.7619.25457.02149.81165.32182.43201.31222.15
Depreciation 100.34110.90135.42156.75168.23193.51213.54235.64260.03286.94
Accounts Receivable --23.1323.17-42.69-51.82-11.90-25.38-28.01-30.91-34.11
Inventories -12.71-49.87-0.08-60.95-60.65-42.60-47.01-51.87-57.24
Accounts Payable -38.033.81-21.2840.9626.2318.4920.4022.5224.85
Capital Expenditure -166.77-308.88-249.50-202.44-166.35-327.66-361.57-399-440.29-485.86
UFCF 214.56-104.79-80.22-90.48387.09-30.65-32.20-35.54-39.22-43.27
WACC
PV UFCF -28.75-28.34-29.34-30.37-31.44
SUM PV UFCF -148.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.60
Free cash flow (t + 1) -44.14
Terminal Value -959.56
Present Value of Terminal Value -697.09

Intrinsic Value

Enterprise Value -845.32
Net Debt -411.03
Equity Value -434.29
Shares Outstanding 22.02
Equity Value Per Share -19.72