Discounted Cash Flow (DCF) Analysis Unlevered

Vertiv Holdings Co (VRT)

$67.62

+1.52 (+2.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.62 | 67.62 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 4,431.204,370.604,998.105,691.506,863.207,677.348,588.079,606.8210,746.4312,021.22
Revenue (%)
EBITDA 409416.60559.40530.201,187.80868.72971.771,087.041,215.991,360.24
EBITDA (%)
EBIT 206.10213.50332.40227.80916.80515.11576.21644.56721.03806.56
EBIT (%)
Depreciation 202.90203.10227302.40271353.61395.56442.48494.97553.68
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 223.50534.60439.10260.60780.40645.06721.58807.17902.921,010.03
Total Cash (%)
Account Receivables 1,212.201,354.401,536.401,888.802,185.202,366.322,647.022,961.023,312.273,705.19
Account Receivables (%)
Inventories 401446.60616.30822884.30904.791,012.121,132.181,266.481,416.72
Inventories (%)
Accounts Payable 636.80730.50858.50984986.401,227.191,372.761,535.601,717.761,921.53
Accounts Payable (%)
Capital Expenditure -70.30-52.70-84.60-111-134.60-128.92-144.22-161.32-180.46-201.87
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 67.62
Beta 1.720
Diluted Shares Outstanding 386.23
Cost of Debt
Tax Rate 13.77
After-tax Cost of Debt 4.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.380
Total Debt 3,126.40
Total Equity 26,116.62
Total Capital 29,243.02
Debt Weighting 10.69
Equity Weighting 89.31
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 4,431.204,370.604,998.105,691.506,863.207,677.348,588.079,606.8210,746.4312,021.22
EBITDA 409416.60559.40530.201,187.80868.72971.771,087.041,215.991,360.24
EBIT 206.10213.50332.40227.80916.80515.11576.21644.56721.03806.56
Tax Rate -35.00%-65.55%28.04%54.13%13.77%-0.92%-0.92%-0.92%-0.92%-0.92%
EBIAT 278.23353.46239.20104.49790.54519.85581.52650.50727.67813.99
Depreciation 202.90203.10227302.40271353.61395.56442.48494.97553.68
Accounts Receivable --142.20-182-352.40-296.40-181.12-280.70-314-351.25-392.92
Inventories --45.60-169.70-205.70-62.30-20.49-107.33-120.06-134.30-150.24
Accounts Payable -93.70128125.502.40240.79145.57162.84182.16203.77
Capital Expenditure -70.30-52.70-84.60-111-134.60-128.92-144.22-161.32-180.46-201.87
UFCF 410.83409.76157.90-136.71570.64783.72590.40660.44738.78826.42
WACC
PV UFCF 702.32474.13475.29476.45477.61
SUM PV UFCF 2,605.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.59
Free cash flow (t + 1) 859.48
Terminal Value 11,323.79
Present Value of Terminal Value 6,544.33

Intrinsic Value

Enterprise Value 9,150.13
Net Debt 2,346
Equity Value 6,804.13
Shares Outstanding 386.23
Equity Value Per Share 17.62