Discounted Cash Flow (DCF) Analysis Unlevered
Stepan Company (SCL)
$108.61
+0.43 (+0.40%)
All numbers are in Millions, Currency in USD
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 | 1,925.01 | 1,993.86 | 1,858.74 | 1,869.75 | 2,345.97 | 2,480.05 | 2,621.79 | 2,771.64 | 2,930.05 | 3,097.52 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 231.81 | 233.65 | 216.28 | 259.62 | 263.32 | 300.12 | 317.27 | 335.40 | 354.57 | 374.84 |
EBITDA (%) | ||||||||||
EBIT | 152.79 | 152.53 | 137.58 | 177.76 | 172.45 | 197.64 | 208.94 | 220.88 | 233.51 | 246.85 |
EBIT (%) | ||||||||||
Depreciation | 79.02 | 81.12 | 78.70 | 81.86 | 90.88 | 102.47 | 108.33 | 114.52 | 121.07 | 127.98 |
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 | 298.89 | 300.19 | 315.38 | 380.59 | 159.19 | 370.47 | 391.65 | 414.03 | 437.70 | 462.71 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 293.54 | 280.02 | 276.84 | 275.40 | 345.54 | 365.29 | 386.17 | 408.24 | 431.57 | 456.24 |
Account Receivables (%) | ||||||||||
Inventories | 172.75 | 200.16 | 203.65 | 218.78 | 244.39 | 258.36 | 273.13 | 288.74 | 305.24 | 322.69 |
Inventories (%) | ||||||||||
Accounts Payable | 204.98 | 205.95 | 194.28 | 236.75 | 258.59 | 273.37 | 289 | 305.52 | 322.98 | 341.44 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -78.61 | -86.65 | -105.57 | -125.79 | -388.96 | -185.59 | -196.20 | -207.41 | -219.27 | -231.80 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 108.61 |
---|---|
Beta | 0.718 |
Diluted Shares Outstanding | 23.22 |
Cost of Debt | |
Tax Rate | 20.13 |
After-tax Cost of Debt | 3.99% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.228 |
Total Debt | 322.86 |
Total Equity | 2,521.82 |
Total Capital | 2,844.68 |
Debt Weighting | 11.35 |
Equity Weighting | 88.65 |
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 | 1,925.01 | 1,993.86 | 1,858.74 | 1,869.75 | 2,345.97 | 2,480.05 | 2,621.79 | 2,771.64 | 2,930.05 | 3,097.52 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 231.81 | 233.65 | 216.28 | 259.62 | 263.32 | 300.12 | 317.27 | 335.40 | 354.57 | 374.84 |
EBIT | 152.79 | 152.53 | 137.58 | 177.76 | 172.45 | 197.64 | 208.94 | 220.88 | 233.51 | 246.85 |
Tax Rate | 34.23% | 19.41% | 18.09% | 25.89% | 20.13% | 23.55% | 23.55% | 23.55% | 23.55% | 23.55% |
EBIAT | 100.49 | 122.93 | 112.69 | 131.73 | 137.73 | 151.10 | 159.73 | 168.86 | 178.51 | 188.72 |
Depreciation | 79.02 | 81.12 | 78.70 | 81.86 | 90.88 | 102.47 | 108.33 | 114.52 | 121.07 | 127.98 |
Accounts Receivable | - | 13.52 | 3.18 | 1.44 | -70.14 | -19.75 | -20.88 | -22.07 | -23.33 | -24.67 |
Inventories | - | -27.42 | -3.48 | -15.14 | -25.61 | -13.97 | -14.77 | -15.61 | -16.50 | -17.45 |
Accounts Payable | - | 0.98 | -11.68 | 42.47 | 21.84 | 14.78 | 15.62 | 16.52 | 17.46 | 18.46 |
Capital Expenditure | -78.61 | -86.65 | -105.57 | -125.79 | -388.96 | -185.59 | -196.20 | -207.41 | -219.27 | -231.80 |
UFCF | 100.90 | 104.47 | 73.85 | 116.58 | -234.26 | 49.04 | 51.84 | 54.81 | 57.94 | 61.25 |
WACC | ||||||||||
PV UFCF | 46.28 | 46.17 | 46.06 | 45.94 | 45.83 | |||||
SUM PV UFCF | 230.28 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.97 |
Free cash flow (t + 1) | 62.47 |
Terminal Value | 1,573.67 |
Present Value of Terminal Value | 1,177.60 |
Intrinsic Value
Enterprise Value | 1,407.88 |
---|---|
Net Debt | 163.68 |
Equity Value | 1,244.20 |
Shares Outstanding | 23.22 |
Equity Value Per Share | 53.59 |