Discounted Cash Flow (DCF) Analysis Levered

Garrett Motion Inc. (GTX)

$9.43

-0.06 (-0.63%)
All numbers are in Millions, Currency in USD
Stock DCF: -1.92 | 9.43 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,2483,0343,6333,6033,8864,082.084,288.054,504.414,731.704,970.45
Revenue (%)
Operating Cash Flow 24225-310375465180.56189.67199.24209.29219.85
Operating Cash Flow (%)
Capital Expenditure -102-80-72-91-83-101.40-106.52-111.89-117.54-123.47
Capital Expenditure (%)
Free Cash Flow 140-55-38228438279.1583.1587.3491.7596.38

Weighted Average Cost Of Capital

Share price $ 9.43
Beta 1.309
Diluted Shares Outstanding 166.60
Cost of Debt
Tax Rate 24.78
After-tax Cost of Debt 7.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.534
Total Debt 1,692
Total Equity 1,570.99
Total Capital 3,262.99
Debt Weighting 51.85
Equity Weighting 48.15
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,2483,0343,6333,6033,8864,082.084,288.054,504.414,731.704,970.45
Operating Cash Flow 24225-310375465180.56189.67199.24209.29219.85
Capital Expenditure -102-80-72-91-83-101.40-106.52-111.89-117.54-123.47
Free Cash Flow 140-55-38228438279.1583.1587.3491.7596.38
WACC
PV LFCF 72.7970.3267.9365.6263.39
SUM PV LFCF 340.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.74
Free cash flow (t + 1) 96.86
Terminal Value 1,175.51
Present Value of Terminal Value 773.18

Intrinsic Value

Enterprise Value 1,113.23
Net Debt 1,433
Equity Value -319.77
Shares Outstanding 166.60
Equity Value Per Share -1.92