Discounted Cash Flow (DCF) Analysis Unlevered

Skyline Champion Corporation (SKY)

$65.42

+0.53 (+0.82%)

All numbers are in Millions, Currency in USD

Stock DCF: 36.40 | 65.42 | 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	1,064.72	1,360.04	1,369.73	1,420.88	2,207.23	2,690.20	3,278.86	3,996.32	4,870.77	5,936.57
Revenue (%)
EBITDA	56.51	-19.89	108.23	132.92	354.61	199.97	243.73	297.06	362.06	441.29
EBITDA (%)
EBIT	48.25	-35.97	89.69	115.21	333.67	170.35	207.62	253.05	308.42	375.91
EBIT (%)
Depreciation	8.26	16.08	18.55	17.70	20.94	29.63	36.11	44.01	53.64	65.38
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	113.73	126.63	209.46	262.58	435.41	395.41	481.94	587.39	715.92	872.57
Total Cash (%)
Account Receivables	41.98	57.65	45.73	57.48	90.54	105.82	128.98	157.20	191.60	233.52
Account Receivables (%)
Inventories	98.02	122.64	126.39	166.11	241.33	269.43	328.38	400.23	487.81	594.55
Inventories (%)
Accounts Payable	36.77	43.42	38.70	57.21	92.16	95.09	115.90	141.26	172.17	209.85
Accounts Payable (%)
Capital Expenditure	-9.44	-12.09	-15.39	-8.02	-31.98	-26.43	-32.21	-39.26	-47.85	-58.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 65.42
Beta	1.656
Diluted Shares Outstanding	57.31
Cost of Debt
Tax Rate	24.93
After-tax Cost of Debt	5.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.585
Total Debt	47.89
Total Equity	3,748.96
Total Capital	3,796.85
Debt Weighting	1.26
Equity Weighting	98.74
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	1,064.72	1,360.04	1,369.73	1,420.88	2,207.23	2,690.20	3,278.86	3,996.32	4,870.77	5,936.57
EBITDA	56.51	-19.89	108.23	132.92	354.61	199.97	243.73	297.06	362.06	441.29
EBIT	48.25	-35.97	89.69	115.21	333.67	170.35	207.62	253.05	308.42	375.91
Tax Rate	63.35%	-40.93%	31.62%	23.79%	24.93%	20.55%	20.55%	20.55%	20.55%	20.55%
EBIAT	17.68	-50.69	61.33	87.80	250.48	135.33	164.95	201.04	245.03	298.65
Depreciation	8.26	16.08	18.55	17.70	20.94	29.63	36.11	44.01	53.64	65.38
Accounts Receivable	-	-15.66	11.92	-11.75	-33.06	-15.29	-23.16	-28.22	-34.40	-41.92
Inventories	-	-24.62	-3.75	-39.73	-75.22	-28.09	-58.95	-71.85	-87.58	-106.74
Accounts Payable	-	6.65	-4.72	18.51	34.95	2.93	20.81	25.36	30.91	37.67
Capital Expenditure	-9.44	-12.09	-15.39	-8.02	-31.98	-26.43	-32.21	-39.26	-47.85	-58.33
UFCF	16.50	-80.34	67.93	64.53	166.11	98.09	107.54	131.07	159.75	194.71
WACC
PV UFCF						87.97	86.50	94.56	103.36	112.98
SUM PV UFCF										485.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.50
Free cash flow (t + 1)	198.60
Terminal Value	2,090.57
Present Value of Terminal Value	1,213.09

Intrinsic Value

Enterprise Value	1,698.46
Net Debt	-387.52
Equity Value	2,085.98
Shares Outstanding	57.31
Equity Value Per Share	36.40