Discounted Cash Flow (DCF) Analysis Unlevered

Worthington Industries, Inc. (WOR)

$56.82

+0.69 (+1.23%)

All numbers are in Millions, Currency in USD

Stock DCF: 173.92 | 56.82 | 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	3,581.62	3,759.56	3,059.12	3,171.43	5,242.22	5,967	6,792	7,731.05	8,799.94	10,016.61
Revenue (%)
EBITDA	345.05	330.30	229.43	1,018.06	624.57	834.60	949.99	1,081.34	1,230.84	1,401.02
EBITDA (%)
EBIT	241.69	234.70	136.75	930.41	525.75	678.18	771.94	878.67	1,000.16	1,138.44
EBIT (%)
Depreciation	103.36	95.60	92.68	87.65	98.83	156.42	178.05	202.67	230.69	262.58
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	121.97	92.36	147.20	640.31	34.48	376.18	428.19	487.39	554.78	631.48
Total Cash (%)
Account Receivables	574.34	512.84	349.41	641.92	878.05	931.92	1,060.76	1,207.42	1,374.36	1,564.38
Account Receivables (%)
Inventories	454.03	484.28	405.10	564.75	759.14	848.38	965.67	1,099.19	1,251.16	1,424.14
Inventories (%)
Accounts Payable	473.49	393.52	247.02	567.39	668.44	744.72	847.69	964.89	1,098.29	1,250.14
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	$ 56.82
Beta	1.264
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	9.580
Total Debt	844.41
Total Equity	3,063.56
Total Capital	3,907.97
Debt Weighting	21.61
Equity Weighting	78.39
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	3,581.62	3,759.56	3,059.12	3,171.43	5,242.22	5,967	6,792	7,731.05	8,799.94	10,016.61
EBITDA	345.05	330.30	229.43	1,018.06	624.57	834.60	949.99	1,081.34	1,230.84	1,401.02
EBIT	241.69	234.70	136.75	930.41	525.75	678.18	771.94	878.67	1,000.16	1,138.44
Tax Rate	6.83%	25.67%	28.88%	21.13%	26.23%	21.75%	21.75%	21.75%	21.75%	21.75%
EBIAT	225.19	174.45	97.27	733.80	387.84	530.69	604.07	687.58	782.65	890.86
Depreciation	103.36	95.60	92.68	87.65	98.83	156.42	178.05	202.67	230.69	262.58
Accounts Receivable	-	61.50	163.42	-292.51	-236.13	-53.87	-128.85	-146.66	-166.94	-190.02
Inventories	-	-30.25	79.18	-159.65	-194.39	-89.24	-117.30	-133.51	-151.97	-172.98
Accounts Payable	-	-79.97	-146.50	320.38	101.05	76.29	102.96	117.20	133.40	151.85
Capital Expenditure	-76.09	-84.50	-95.50	-82.18	-94.60	-141.89	-161.51	-183.84	-209.26	-238.19
UFCF	252.46	136.83	190.54	607.49	62.60	478.41	477.43	543.44	618.57	704.10
WACC
PV UFCF						442.56	408.56	430.20	452.99	476.98
SUM PV UFCF										2,211.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.10
Free cash flow (t + 1)	718.18
Terminal Value	11,773.44
Present Value of Terminal Value	7,975.81

Intrinsic Value

Enterprise Value	10,187.11
Net Debt	809.92
Equity Value	9,377.19
Shares Outstanding	53.92
Equity Value Per Share	173.92