Discounted Cash Flow (DCF) Analysis Unlevered

Travel + Leisure Co. (TNL)

$39.12

-0.07 (-0.18%)
All numbers are in Millions, Currency in USD
Stock DCF: 102.73 | 39.12 | undervalue

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 5,0763,9314,0432,1603,1342,967.982,810.752,661.852,520.842,387.30
Revenue (%)
EBITDA 1,0111,11098140746582.16551.32522.12494.46468.26
EBITDA (%)
EBIT 798972860-86622460.54436.14413.04391.16370.43
EBIT (%)
Depreciation 213138121126124121.63115.18109.08103.3097.83
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 1162434001,231396522.29494.62468.42443.60420.10
Total Cash (%)
Account Receivables 7113,2273,3802,6942,5022,280.932,160.102,045.671,937.301,834.67
Account Receivables (%)
Inventories 3401,2241,1991,3471,2161,001.12948.08897.86850.30805.25
Inventories (%)
Accounts Payable 2566673626279.4075.2071.2167.4463.87
Accounts Payable (%)
Capital Expenditure -153-99-108-69-57-78.46-74.30-70.36-66.64-63.11
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 39.12
Beta 1.720
Diluted Shares Outstanding 87.30
Cost of Debt
Tax Rate 28.21
After-tax Cost of Debt 2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.624
Total Debt 5,449
Total Equity 3,415.18
Total Capital 8,864.18
Debt Weighting 61.47
Equity Weighting 38.53
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 5,0763,9314,0432,1603,1342,967.982,810.752,661.852,520.842,387.30
EBITDA 1,0111,11098140746582.16551.32522.12494.46468.26
EBIT 798972860-86622460.54436.14413.04391.16370.43
Tax Rate -47.63%-69.70%25.44%7.61%28.21%-11.21%-11.21%-11.21%-11.21%-11.21%
EBIAT 1,178.061,649.45641.21-79.46446.56512.18485.05459.35435.02411.97
Depreciation 213138121126124121.63115.18109.08103.3097.83
Accounts Receivable --2,516-153686192221.07120.83114.43108.37102.63
Inventories --88425-148131214.8853.0350.2247.5645.04
Accounts Payable --1907-11-017.40-4.21-3.98-3.77-3.57
Capital Expenditure -153-99-108-69-57-78.46-74.30-70.36-66.64-63.11
UFCF 1,238.06-1,901.55533.21504.54836.561,008.71695.59658.74623.84590.80
WACC
PV UFCF 950.90618.14551.84492.65439.81
SUM PV UFCF 3,053.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.08
Free cash flow (t + 1) 602.61
Terminal Value 14,769.89
Present Value of Terminal Value 10,995.37

Intrinsic Value

Enterprise Value 14,048.71
Net Debt 5,080
Equity Value 8,968.71
Shares Outstanding 87.30
Equity Value Per Share 102.73