Discounted Cash Flow (DCF) Analysis Unlevered

Veritiv Corporation (VRTV)

$137.11

+1.71 (+1.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 85.40 | 137.11 | overvalue

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 8,364.708,696.207,659.406,345.606,850.506,556.696,275.486,006.345,748.735,502.18
Revenue (%)
EBITDA 80.908360.20123.70268.40112.45107.62103.0198.5994.36
EBITDA (%)
EBIT 26.7029.506.7066213.2064.2361.4858.8456.3253.90
EBIT (%)
Depreciation 54.2053.5053.5057.7055.2048.2146.1544.1742.2740.46
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 80.3064.3038120.6049.3063.1560.4457.8555.3752.99
Total Cash (%)
Account Receivables 1,238.701,262.60978.40905.101,082.40946.33905.74866.90829.72794.13
Account Receivables (%)
Inventories 722.70688.20552.90465.40484.50500.66479.18458.63438.96420.13
Inventories (%)
Accounts Payable 680.10641.90476.90471.90561.90490.14469.12449429.74411.31
Accounts Payable (%)
Capital Expenditure -32.50-45.40-34.10-23.60-20.40-26.56-25.42-24.33-23.29-22.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 137.11
Beta 2.133
Diluted Shares Outstanding 16.05
Cost of Debt
Tax Rate 26.78
After-tax Cost of Debt 1.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.948
Total Debt 925.20
Total Equity 2,200.62
Total Capital 3,125.82
Debt Weighting 29.60
Equity Weighting 70.40
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 8,364.708,696.207,659.406,345.606,850.506,556.696,275.486,006.345,748.735,502.18
EBITDA 80.908360.20123.70268.40112.45107.62103.0198.5994.36
EBIT 26.7029.506.7066213.2064.2361.4858.8456.3253.90
Tax Rate -600.00%-53.92%-2.43%20.47%26.78%-121.82%-121.82%-121.82%-121.82%-121.82%
EBIAT 186.9045.416.8652.49156.09142.48136.37130.52124.92119.56
Depreciation 54.2053.5053.5057.7055.2048.2146.1544.1742.2740.46
Accounts Receivable --23.90284.2073.30-177.30136.0740.5938.8537.1835.59
Inventories -34.50135.3087.50-19.10-16.1621.4720.5519.6718.83
Accounts Payable --38.20-165-590-71.76-21.02-20.12-19.26-18.43
Capital Expenditure -32.50-45.40-34.10-23.60-20.40-26.56-25.42-24.33-23.29-22.29
UFCF 208.6025.91280.76242.3984.49212.29198.13189.63181.50173.72
WACC
PV UFCF 193.91165.30144.51126.34110.45
SUM PV UFCF 740.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.48
Free cash flow (t + 1) 177.19
Terminal Value 2,368.85
Present Value of Terminal Value 1,506.13

Intrinsic Value

Enterprise Value 2,246.64
Net Debt 875.90
Equity Value 1,370.74
Shares Outstanding 16.05
Equity Value Per Share 85.40