Discounted Cash Flow (DCF) Analysis Unlevered

Worthington Industries, Inc. (WOR)

$54.29

-0.66 (-1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 232.58 | 54.29 | 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 3,581.623,759.563,059.123,171.435,242.225,9676,7927,731.058,799.9410,016.61
Revenue (%)
EBITDA 345.05330.30229.431,018.06624.57834.60949.991,081.341,230.841,401.02
EBITDA (%)
EBIT 241.69234.70136.75930.41525.75678.18771.94878.671,000.161,138.44
EBIT (%)
Depreciation 103.3695.6092.6887.6598.83156.42178.05202.67230.69262.58
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 121.9792.36147.20640.3134.48376.18428.19487.39554.78631.48
Total Cash (%)
Account Receivables 574.34512.84349.41641.92878.05931.921,060.761,207.421,374.361,564.38
Account Receivables (%)
Inventories 454.03484.28405.10564.75759.14848.38965.671,099.191,251.161,424.14
Inventories (%)
Accounts Payable 473.49393.52247.02567.39668.44744.72847.69964.891,098.291,250.14
Accounts Payable (%)
Capital Expenditure -76.09-84.50-95.50-82.18-94.60-141.89-161.51-183.84-209.26-238.19
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 54.29
Beta 1.029
Diluted Shares Outstanding 53.92
Cost of Debt
Tax Rate 26.23
After-tax Cost of Debt 2.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.847
Total Debt 844.41
Total Equity 2,927.15
Total Capital 3,771.56
Debt Weighting 22.39
Equity Weighting 77.61
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 3,581.623,759.563,059.123,171.435,242.225,9676,7927,731.058,799.9410,016.61
EBITDA 345.05330.30229.431,018.06624.57834.60949.991,081.341,230.841,401.02
EBIT 241.69234.70136.75930.41525.75678.18771.94878.671,000.161,138.44
Tax Rate 6.83%25.67%28.88%21.13%26.23%21.75%21.75%21.75%21.75%21.75%
EBIAT 225.19174.4597.27733.80387.84530.69604.07687.58782.65890.86
Depreciation 103.3695.6092.6887.6598.83156.42178.05202.67230.69262.58
Accounts Receivable -61.50163.42-292.51-236.13-53.87-128.85-146.66-166.94-190.02
Inventories --30.2579.18-159.65-194.39-89.24-117.30-133.51-151.97-172.98
Accounts Payable --79.97-146.50320.38101.0576.29102.96117.20133.40151.85
Capital Expenditure -76.09-84.50-95.50-82.18-94.60-141.89-161.51-183.84-209.26-238.19
UFCF 252.46136.83190.54607.4962.60478.41477.43543.44618.57704.10
WACC
PV UFCF 448.37419.35447.36477.24509.11
SUM PV UFCF 2,301.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.70
Free cash flow (t + 1) 718.18
Terminal Value 15,280.43
Present Value of Terminal Value 11,048.76

Intrinsic Value

Enterprise Value 13,350.18
Net Debt 809.92
Equity Value 12,540.26
Shares Outstanding 53.92
Equity Value Per Share 232.58