Discounted Cash Flow (DCF) Analysis Unlevered

Spectrum Brands Holdings, Inc. (SPB)

$39.03

-0.45 (-1.14%)

All numbers are in Millions, Currency in USD

Stock DCF: -113.09 | 39.03 | overvalue

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	5,008.50	3,145.90	3,802.10	3,964.20	2,998.10	2,725	2,476.77	2,251.15	2,046.09	1,859.71
Revenue (%)
EBITDA	713.70	703.90	867.70	461.70	396.70	459.57	417.71	379.66	345.07	313.64
EBITDA (%)
EBIT	514.40	572.20	686.90	313.20	279.70	347.47	315.82	287.05	260.90	237.13
EBIT (%)
Depreciation	199.30	131.70	180.80	148.50	117	112.10	101.89	92.61	84.17	76.51
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	270.10	552.50	627.10	531.60	187.90	322.24	292.88	266.20	241.96	219.91
Total Cash (%)
Account Receivables	569.80	289.90	430.90	575.30	312.10	309.82	281.60	255.94	232.63	211.44
Account Receivables (%)
Inventories	775.50	503.40	548.40	557.70	562.80	429.18	390.09	354.55	322.26	292.90
Inventories (%)
Accounts Payable	729.10	436.10	456.80	557.50	388.60	367.65	334.16	303.72	276.05	250.91
Accounts Payable (%)
Capital Expenditure	-115	-64.70	-58.40	-61	-43.60	-48.41	-44	-39.99	-36.35	-33.03
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 39.03
Beta	1.295
Diluted Shares Outstanding	43.20
Cost of Debt
Tax Rate	1,808.11
After-tax Cost of Debt	-78.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.916
Total Debt	2,550.80
Total Equity	1,686.10
Total Capital	4,236.90
Debt Weighting	60.20
Equity Weighting	39.80
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	5,008.50	3,145.90	3,802.10	3,964.20	2,998.10	2,725	2,476.77	2,251.15	2,046.09	1,859.71
EBITDA	713.70	703.90	867.70	461.70	396.70	459.57	417.71	379.66	345.07	313.64
EBIT	514.40	572.20	686.90	313.20	279.70	347.47	315.82	287.05	260.90	237.13
Tax Rate	29.89%	591.55%	343.50%	37.07%	1,808.11%	562.02%	562.02%	562.02%	562.02%	562.02%
EBIAT	360.62	-2,812.68	-1,672.59	197.11	-4,777.58	-1,605.38	-1,459.14	-1,326.23	-1,205.42	-1,095.61
Depreciation	199.30	131.70	180.80	148.50	117	112.10	101.89	92.61	84.17	76.51
Accounts Receivable	-	279.90	-141	-144.40	263.20	2.28	28.22	25.65	23.31	21.19
Inventories	-	272.10	-45	-9.30	-5.10	133.62	39.10	35.53	32.30	29.36
Accounts Payable	-	-293	20.70	100.70	-168.90	-20.95	-33.49	-30.44	-27.67	-25.15
Capital Expenditure	-115	-64.70	-58.40	-61	-43.60	-48.41	-44	-39.99	-36.35	-33.03
UFCF	444.92	-2,486.68	-1,715.49	231.61	-4,614.98	-1,426.73	-1,367.42	-1,242.86	-1,129.64	-1,026.74
WACC
PV UFCF						-2,505.24	-4,216.14	-6,728.85	-10,739.07	-17,139.29
SUM PV UFCF										-41,328.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	-43.05
Free cash flow (t + 1)	-1,047.28
Terminal Value	2,324.70
Present Value of Terminal Value	38,805.93

Intrinsic Value

Enterprise Value	-2,522.66
Net Debt	2,362.90
Equity Value	-4,885.56
Shares Outstanding	43.20
Equity Value Per Share	-113.09