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 1,696.491,809.381,804.161,826.222,000.822,086.602,176.062,269.362,366.662,468.12
Revenue (%)
EBITDA 278.37332.18288.97305.39245.95333.02347.30362.19377.71393.91
EBITDA (%)
EBIT 181.70228.84184.27199.44137.18214.29223.48233.06243.05253.47
EBIT (%)
Depreciation 96.66103.33104.70105.96108.78118.73123.82129.13134.66140.44
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 270.51385.34474.84512.87376.40460.96480.72501.33522.83545.24
Total Cash (%)
Account Receivables 200.80203.46190.92208.33249.20240.06250.36261.09272.28283.96
Account Receivables (%)
Inventories 264.57285.23260.55325.12370.85342.78357.48372.80388.79405.46
Inventories (%)
Accounts Payable 73.5077.9264.0381.3682.1386.5990.3094.1798.21102.42
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 1,696.491,809.381,804.161,826.222,000.822,086.602,176.062,269.362,366.662,468.12
EBITDA 278.37332.18288.97305.39245.95333.02347.30362.19377.71393.91
EBIT 181.70228.84184.27199.44137.18214.29223.48233.06243.05253.47
Tax Rate 12.47%24.71%23.68%23.24%23.02%21.42%21.42%21.42%21.42%21.42%
EBIAT 159.04172.30140.64153.08105.60168.38175.60183.13190.98199.17
Depreciation 96.66103.33104.70105.96108.78118.73123.82129.13134.66140.44
Accounts Receivable --2.6612.54-17.41-40.879.13-10.29-10.73-11.19-11.67
Inventories --20.6724.69-64.58-45.7328.07-14.70-15.33-15.98-16.67
Accounts Payable -4.42-13.8817.320.774.453.713.874.044.21
Capital Expenditure -112.75-119.81-116.72-133.64-144.32-143.01-149.14-155.53-162.20-169.15
UFCF 142.96136.91151.9760.73-15.76185.76129134.53140.30146.32
WACC
PV UFCF 172.19110.85107.15103.59100.14
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