Discounted Cash Flow (DCF) Analysis Unlevered

UniFirst Corporation (UNF)

$194.65

+0.54 (+0.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 139.49 | 194.65 | 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	1,696.49	1,809.38	1,804.16	1,826.22	2,000.82	2,086.60	2,176.06	2,269.36	2,366.66	2,468.12
Revenue (%)
EBITDA	278.37	332.18	288.97	305.39	245.95	333.02	347.30	362.19	377.71	393.91
EBITDA (%)
EBIT	181.70	228.84	184.27	199.44	137.18	214.29	223.48	233.06	243.05	253.47
EBIT (%)
Depreciation	96.66	103.33	104.70	105.96	108.78	118.73	123.82	129.13	134.66	140.44
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	270.51	385.34	474.84	512.87	376.40	460.96	480.72	501.33	522.83	545.24
Total Cash (%)
Account Receivables	200.80	203.46	190.92	208.33	249.20	240.06	250.36	261.09	272.28	283.96
Account Receivables (%)
Inventories	264.57	285.23	260.55	325.12	370.85	342.78	357.48	372.80	388.79	405.46
Inventories (%)
Accounts Payable	73.50	77.92	64.03	81.36	82.13	86.59	90.30	94.17	98.21	102.42
Accounts Payable (%)
Capital Expenditure	-112.75	-119.81	-116.72	-133.64	-144.32	-143.01	-149.14	-155.53	-162.20	-169.15
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 194.65
Beta	0.937
Diluted Shares Outstanding	19.04
Cost of Debt
Tax Rate	23.02
After-tax Cost of Debt	4.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.930
Total Debt	51.67
Total Equity	3,705.75
Total Capital	3,757.42
Debt Weighting	1.38
Equity Weighting	98.62
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	1,696.49	1,809.38	1,804.16	1,826.22	2,000.82	2,086.60	2,176.06	2,269.36	2,366.66	2,468.12
EBITDA	278.37	332.18	288.97	305.39	245.95	333.02	347.30	362.19	377.71	393.91
EBIT	181.70	228.84	184.27	199.44	137.18	214.29	223.48	233.06	243.05	253.47
Tax Rate	12.47%	24.71%	23.68%	23.24%	23.02%	21.42%	21.42%	21.42%	21.42%	21.42%
EBIAT	159.04	172.30	140.64	153.08	105.60	168.38	175.60	183.13	190.98	199.17
Depreciation	96.66	103.33	104.70	105.96	108.78	118.73	123.82	129.13	134.66	140.44
Accounts Receivable	-	-2.66	12.54	-17.41	-40.87	9.13	-10.29	-10.73	-11.19	-11.67
Inventories	-	-20.67	24.69	-64.58	-45.73	28.07	-14.70	-15.33	-15.98	-16.67
Accounts Payable	-	4.42	-13.88	17.32	0.77	4.45	3.71	3.87	4.04	4.21
Capital Expenditure	-112.75	-119.81	-116.72	-133.64	-144.32	-143.01	-149.14	-155.53	-162.20	-169.15
UFCF	142.96	136.91	151.97	60.73	-15.76	185.76	129	134.53	140.30	146.32
WACC
PV UFCF						172.19	110.85	107.15	103.59	100.14
SUM PV UFCF										593.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.88
Free cash flow (t + 1)	149.24
Terminal Value	2,538.15
Present Value of Terminal Value	1,737.05

Intrinsic Value

Enterprise Value	2,330.96
Net Debt	-324.73
Equity Value	2,655.69
Shares Outstanding	19.04
Equity Value Per Share	139.49