Discounted Cash Flow (DCF) Analysis Unlevered

Universal Corporation (UVV)

$57.39

+0.19 (+0.33%)
All numbers are in Millions, Currency in USD
Stock DCF: 87.55 | 57.39 | undervalue

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 2,033.952,227.151,909.981,983.362,103.602,130.752,158.252,186.102,214.322,242.89
Revenue (%)
EBITDA 206.63199.92165.20186.51205.51200.11202.69205.31207.96210.64
EBITDA (%)
EBIT 171.79162.82126.82141.78152.99156.90158.92160.97163.05165.16
EBIT (%)
Depreciation 34.8437.1038.3844.7352.5243.2143.7744.3444.9145.49
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 234.13297.56107.43197.2281.65188.87191.31193.78196.28198.82
Total Cash (%)
Account Receivables 379.16399.06352.19368.07389.98392.46397.53402.66407.86413.12
Account Receivables (%)
Inventories 748.73699.22806.57786.621,016.67845.60856.51867.56878.76890.10
Inventories (%)
Accounts Payable 179.84145.61140.26140.77277.35183.27185.63188.03190.45192.91
Accounts Payable (%)
Capital Expenditure -34.04-38.76-35.23-66.15-53.20-47.40-48.01-48.63-49.26-49.89
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 57.39
Beta 0.612
Diluted Shares Outstanding 24.92
Cost of Debt
Tax Rate 39.14
After-tax Cost of Debt 2.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.394
Total Debt 741.11
Total Equity 1,430.33
Total Capital 2,171.43
Debt Weighting 34.13
Equity Weighting 65.87
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 2,033.952,227.151,909.981,983.362,103.602,130.752,158.252,186.102,214.322,242.89
EBITDA 206.63199.92165.20186.51205.51200.11202.69205.31207.96210.64
EBIT 171.79162.82126.82141.78152.99156.90158.92160.97163.05165.16
Tax Rate 36.61%31.19%36.73%30.48%39.14%34.83%34.83%34.83%34.83%34.83%
EBIAT 108.90112.0380.2498.5793.10102.25103.57104.91106.26107.63
Depreciation 34.8437.1038.3844.7352.5243.2143.7744.3444.9145.49
Accounts Receivable --19.9046.87-15.87-21.91-2.49-5.07-5.13-5.20-5.26
Inventories -49.51-107.3619.95-230.06171.08-10.91-11.05-11.20-11.34
Accounts Payable --34.22-5.360.51136.58-94.082.372.402.432.46
Capital Expenditure -34.04-38.76-35.23-66.15-53.20-47.40-48.01-48.63-49.26-49.89
UFCF 109.70105.7617.5581.74-22.96172.5785.7286.8287.9489.08
WACC
PV UFCF 164.3777.7675.0272.3869.83
SUM PV UFCF 459.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.99
Free cash flow (t + 1) 90.86
Terminal Value 3,038.81
Present Value of Terminal Value 2,382.12

Intrinsic Value

Enterprise Value 2,841.48
Net Debt 659.46
Equity Value 2,182.02
Shares Outstanding 24.92
Equity Value Per Share 87.55