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Discounted Cash Flow (DCF) Analysis Levered


Graham Holdings Company

Graham Holdings Company (GHC)

Consumer Cyclical

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,600.602,737.132,586.322,482.092,592.052,696.252,718.622,741.192,763.942,786.882,810.01
Revenue (%)
Operating Cash Flow 310.25313.4070.61261.36268.02287.15260.99263.15265.34267.54269.76
Operating Cash Flow (%)
Capital Expenditure -206.49-237.31-136.82-66.52-60.39-98.14-138.38-139.53-140.68-141.85-143.03
Capital Expenditure (%)
Free Cash Flow 103.7676.09-66.21194.84207.62189.01122.61123.63124.65125.69126.73

Weighted Average Cost Of Capital

Share price $ 623.14
Diluted Shares Outstanding 5.33
Cost of Debt
Tax Rate 16.11
After-tax Cost of Debt -0.76
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.93
Total Debt 470.78
Total Equity 3,323.21
Total Capital 3,793.98
Debt Weighting 12.41
Equity Weighting 87.59
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,600.602,737.132,586.322,482.092,592.052,696.252,718.622,741.192,763.942,786.882,810.01
Operating Cash Flow 310.25313.4070.61261.36268.02287.15260.99263.15265.34267.54269.76
Capital Expenditure -206.49-237.31-136.82-66.52-60.39-98.14-138.38-139.53-140.68-141.85-143.03
Free Cash Flow 103.7676.09-66.21194.84207.62189.01122.61123.63124.65125.69126.73
WACC
PV LFCF 122.61117.92113.41109.07104.90
SUM PV LFCF 986.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.84
Free cash flow (t + 1) 745.55
Terminal Value 88,755.88
Present Value of Terminal Value 70,074.83

Intrinsic Value

Enterprise Value 75,313.63
Net Debt -307.90
Equity Value 75,621.53
Shares Outstanding 5.33
Equity Value Per Share 2,565.57