Discounted Cash Flow (DCF) Analysis Unlevered

Sealed Air Corporation (SEE)

$40.1

-0.12 (-0.30%)

All numbers are in Millions, Currency in USD

Stock DCF: 66.59 | 40.1 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	4,791.10	4,903.20	5,533.80	5,641.90	5,964.51	6,305.56	6,666.12	7,047.29	7,450.26	7,876.27
Revenue (%)
EBITDA	674.50	1,003.80	1,086	1,076.50	1,092.34	1,154.80	1,220.83	1,290.64	1,364.44	1,442.46
EBITDA (%)
EBIT	523.70	829.60	899.60	891.90	893.41	944.50	998.50	1,055.60	1,115.96	1,179.77
EBIT (%)
Depreciation	150.80	174.20	186.40	184.60	198.93	210.30	222.33	235.04	248.48	262.69
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	262.40	548.70	561	456.10	303.10	504.08	532.90	563.38	595.59	629.65
Total Cash (%)
Account Receivables	669.60	681.70	732.80	696.60	576.30	796.15	841.67	889.80	940.68	994.46
Account Receivables (%)
Inventories	570.30	596.70	725.70	866.30	961.70	865.95	915.46	967.81	1,023.15	1,081.65
Inventories (%)
Accounts Payable	738.50	754.20	959.90	865.60	826.30	975.32	1,031.09	1,090.05	1,152.37	1,218.27
Accounts Payable (%)
Capital Expenditure	-189.70	-181.10	-213.10	-237.30	-234.25	-247.65	-261.81	-276.78	-292.61	-309.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 40.1
Beta	1.244
Diluted Shares Outstanding	147.40
Cost of Debt
Tax Rate	32.59
After-tax Cost of Debt	3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.683
Total Debt	4,915.40
Total Equity	5,910.74
Total Capital	10,826.14
Debt Weighting	45.40
Equity Weighting	54.60
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	4,791.10	4,903.20	5,533.80	5,641.90	5,964.51	6,305.56	6,666.12	7,047.29	7,450.26	7,876.27
EBITDA	674.50	1,003.80	1,086	1,076.50	1,092.34	1,154.80	1,220.83	1,290.64	1,364.44	1,442.46
EBIT	523.70	829.60	899.60	891.90	893.41	944.50	998.50	1,055.60	1,115.96	1,179.77
Tax Rate	28.98%	19.69%	29.24%	32.59%	27.62%	27.62%	27.62%	27.62%	27.62%	27.62%
EBIAT	371.95	666.25	636.58	601.20	646.61	683.59	722.67	764	807.68	853.87
Depreciation	150.80	174.20	186.40	184.60	198.93	210.30	222.33	235.04	248.48	262.69
Accounts Receivable	-	-12.10	-51.10	36.20	120.30	-219.85	-45.52	-48.13	-50.88	-53.79
Inventories	-	-26.40	-129	-140.60	-95.40	95.75	-49.52	-52.35	-55.34	-58.50
Accounts Payable	-	15.70	205.70	-94.30	-39.30	149.02	55.77	58.96	62.33	65.89
Capital Expenditure	-189.70	-181.10	-213.10	-237.30	-234.25	-247.65	-261.81	-276.78	-292.61	-309.34
UFCF	333.05	636.55	635.48	349.80	596.88	671.16	643.92	680.74	719.67	760.82
WACC
PV UFCF					596.88	628.31	564.32	558.50	552.74	547.04
SUM PV UFCF										2,850.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.82
Free cash flow (t + 1)	776.03
Terminal Value	16,100.27
Present Value of Terminal Value	11,576.31

Intrinsic Value

Enterprise Value	14,427.23
Net Debt	4,612.30
Equity Value	9,814.93
Shares Outstanding	147.40
Equity Value Per Share	66.59