Discounted Cash Flow (DCF) Analysis Levered


Graham Holdings Company

Graham Holdings Company (GHC)

$410.47
-5.57 (-1.34%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 3,487.863,535.302,586.072,481.852,591.802,695.992,932.162,872.052,813.172,755.502,699.01
Revenue (%)
Operating Cash Flow 327.86372.2774.74261.34267.99287.12165.08246.13241.09236.15231.31
Operating Cash Flow (%)
Capital Expenditure 223.92237.22136.8066.5160.3998.1393.54124.07121.53119.04116.60
Capital Expenditure (%)
Free Cash Flow 551.78609.49211.54327.85328.38385.26258.62370.21362.62355.18347.90

Weighted Average Cost Of Capital

Weighted Average Cost Of Capital

Share price $ 410.47
Diluted Shares Outstanding 5.33
Cost of Debt
Tax Rate 23.12
After-tax Cost of Debt 3.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.93
Total Debt 512.83
Total Equity 2,186.57
Total Capital 2,268.75
Debt Weighting 3.62
Equity Weighting 96.38
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 3,487.863,535.302,586.072,481.852,591.802,695.992,932.162,872.052,813.172,755.502,699.01
Operating Cash Flow 327.86372.2774.74261.34267.99287.12165.08246.13241.09236.15231.31
Capital Expenditure 223.92237.22136.8066.5160.3998.1393.54124.07121.53119.04116.60
Free Cash Flow 551.78609.49211.54327.85328.38385.26258.62370.21362.62355.18347.90
WACC
PV LFCF 352.95329.60307.79287.42
SUM PV LFCF 3,182.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.89
Free cash flow (t + 1) 350.36
Terminal Value 39,365.89
Present Value of Terminal Value 31,006.28

Intrinsic Value

Enterprise Value 33,958.77
Net Debt 498.95
Equity Value 33,459.82
Shares Outstanding 5.33
Equity Value Per Share 6,514.70