Discounted Cash Flow (DCF) Analysis Unlevered

Service Corporation International (SCI)

$57.87

-0.08 (-0.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 134.36 | 57.87 | undervalue

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 3,095.033,190.173,230.783,511.514,143.144,464.484,810.745,183.865,585.916,019.15
Revenue (%)
EBITDA 749.99802.78826.751,083.041,473.271,262.451,360.361,465.871,579.561,702.07
EBITDA (%)
EBIT 569.20622.94650.10824.891,195.80985.691,062.141,144.521,233.291,328.94
EBIT (%)
Depreciation 180.79179.85176.65258.15277.47276.75298.22321.35346.27373.13
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 330.04198.85186.28230.86268.63318.95343.68370.34399.06430.01
Total Cash (%)
Account Receivables 98.8882.1687.5896.66119.69126.10135.88146.42157.77170.01
Account Receivables (%)
Inventories 25.3824.9525.1223.9325.9332.9235.4738.2341.1944.38
Inventories (%)
Accounts Payable 173.68173.36174.49186.40204.09238.24256.71276.62298.08321.20
Accounts Payable (%)
Capital Expenditure -214.50-250.07-51.37-222.21-303.66-268.02-288.80-311.20-335.34-361.35
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 57.87
Beta 0.756
Diluted Shares Outstanding 178.99
Cost of Debt
Tax Rate 23.20
After-tax Cost of Debt 2.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.446
Total Debt 4,061.59
Total Equity 10,358.15
Total Capital 14,419.74
Debt Weighting 28.17
Equity Weighting 71.83
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 3,095.033,190.173,230.783,511.514,143.144,464.484,810.745,183.865,585.916,019.15
EBITDA 749.99802.78826.751,083.041,473.271,262.451,360.361,465.871,579.561,702.07
EBIT 569.20622.94650.10824.891,195.80985.691,062.141,144.521,233.291,328.94
Tax Rate -36.58%-1.24%20.42%22.08%23.20%5.58%5.58%5.58%5.58%5.58%
EBIAT 777.40630.66517.35642.79918.37930.731,002.921,080.711,164.521,254.84
Depreciation 180.79179.85176.65258.15277.47276.75298.22321.35346.27373.13
Accounts Receivable -16.72-5.42-9.09-23.02-6.41-9.78-10.54-11.36-12.24
Inventories -0.43-0.171.19-2.01-6.99-2.55-2.75-2.96-3.19
Accounts Payable --0.321.1311.9117.6934.1418.4819.9121.4523.12
Capital Expenditure -214.50-250.07-51.37-222.21-303.66-268.02-288.80-311.20-335.34-361.35
UFCF 743.69577.26638.17682.74884.84960.211,018.481,097.471,182.591,274.31
WACC
PV UFCF 904.58903.88917.56931.44945.53
SUM PV UFCF 4,602.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.15
Free cash flow (t + 1) 1,299.80
Terminal Value 31,320.36
Present Value of Terminal Value 23,239.50

Intrinsic Value

Enterprise Value 27,842.49
Net Debt 3,792.96
Equity Value 24,049.52
Shares Outstanding 178.99
Equity Value Per Share 134.36