Discounted Cash Flow (DCF) Analysis Unlevered

Stepan Company (SCL)

$91.01

-1.03 (-1.12%)
All numbers are in Millions, Currency in USD
Stock DCF: -76.09 | 91.01 | overvalue

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 1,993.861,858.741,869.752,345.972,773.273,033.263,317.633,628.653,968.834,340.91
Revenue (%)
EBITDA 156.59132.75173.95177.49199.80237.01259.23283.53310.12339.19
EBITDA (%)
EBIT 75.4854.0592.0986.61105.15115.88126.75138.63151.62165.84
EBIT (%)
Depreciation 81.1278.7081.8690.8894.65121.13132.49144.91158.49173.35
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 300.19315.38349.94159.19173.75386.98423.26462.94506.34553.81
Total Cash (%)
Account Receivables 280.02276.84301.32419.54436.91477.39522.14571.09624.63683.19
Account Receivables (%)
Inventories 200.16203.65218.78305.54402.53365.42399.67437.14478.13522.95
Inventories (%)
Accounts Payable 205.95194.28236.75323.36375.73368.70403.26441.07482.41527.64
Accounts Payable (%)
Capital Expenditure -86.65-105.57-125.79-194.48-301.55-217.89-238.32-260.66-285.10-311.82
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 91.01
Beta 0.841
Diluted Shares Outstanding 23.06
Cost of Debt
Tax Rate 22.02
After-tax Cost of Debt 3.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.255
Total Debt 587.14
Total Equity 2,099.05
Total Capital 2,686.19
Debt Weighting 21.86
Equity Weighting 78.14
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 1,993.861,858.741,869.752,345.972,773.273,033.263,317.633,628.653,968.834,340.91
EBITDA 156.59132.75173.95177.49199.80237.01259.23283.53310.12339.19
EBIT 75.4854.0592.0986.61105.15115.88126.75138.63151.62165.84
Tax Rate 19.41%18.09%25.89%20.13%22.02%21.11%21.11%21.11%21.11%21.11%
EBIAT 60.8344.2768.2469.188291.4299.99109.37119.62130.83
Depreciation 81.1278.7081.8690.8894.65121.13132.49144.91158.49173.35
Accounts Receivable -3.18-24.48-118.22-17.37-40.47-44.75-48.95-53.54-58.56
Inventories --3.48-15.14-86.76-96.9937.11-34.26-37.47-40.98-44.82
Accounts Payable --11.6842.4786.6152.36-7.0334.5637.8141.3545.23
Capital Expenditure -86.65-105.57-125.79-194.48-301.55-217.89-238.32-260.66-285.10-311.82
UFCF 55.305.4327.17-152.80-186.91-15.73-50.29-55-60.16-65.80
WACC
PV UFCF -14.67-43.77-44.67-45.59-46.52
SUM PV UFCF -195.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.18
Free cash flow (t + 1) -67.77
Terminal Value -1,621.29
Present Value of Terminal Value -1,146.28

Intrinsic Value

Enterprise Value -1,341.50
Net Debt 413.39
Equity Value -1,754.89
Shares Outstanding 23.06
Equity Value Per Share -76.09