DCF Tool

ARMK

Aramark – Food Service Contractors
Aramark proudly serves the world's leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world. It delivers innovative experiences and services in food, facilities management and uniforms to millions of people every day. It strives to create a better world by making a positive impact on people and the planet, including commitments to engage our employees; empower healthy consumers; build local communities; source ethically, inclusively and responsibly; operate efficiently and reduce waste. Aramark is recognized as a Best Place to Work by the Human Rights Campaign (LGBTQ+), DiversityInc, Equal Employment Publications and the Disability Equality Index.
Analysis Results
Intrinsic Value $8.92
Latest Price $33.54
Relative Value 276% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -12.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -12.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 200 187
2023 176 154
2024 154 126
2025 135 103
2026 119 84.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2450 million. This corresponds to a present value of 1640 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 655 million. Adding in the terminal value gives a total present value of 2290 million.

There are presently 257.0 million outstanding shares, so the intrinsic value per share is 8.92.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,797,710,000
Current Cash 1,065,182,000
Current Liabilities 5,714,866,000
Current Debt 117,700,000
Non-Cash Working Capital (NCWC) -864,638,000
Change in NCWC -783,718,000
EBIT 382,888,000
Tax Provision -81,266,000
Depreciation and Amortization 1,101,384,000
Capital Expenditure -815,636,000
Unlevered Free Cash Flow -115,082,000
Current Assets 4,675,811,000
Current Cash 2,509,188,000
Current Liabilities 2,347,458,000
Current Debt 99,915,000
Non-Cash Working Capital (NCWC) -80,920,000
Change in NCWC 142,706,000
EBIT -66,319,000
Tax Provision -186,284,000
Depreciation and Amortization 595,195,000
Capital Expenditure -418,508,000
Unlevered Free Cash Flow 253,074,000
Current Assets 2,658,387,000
Current Cash 246,643,000
Current Liabilities 2,705,298,000
Current Debt 69,928,000
Non-Cash Working Capital (NCWC) -223,626,000
Change in NCWC -450,774,000
EBIT 734,850,000
Tax Provision 107,706,000
Depreciation and Amortization 592,573,000
Capital Expenditure -503,090,000
Unlevered Free Cash Flow 231,250,947
Current Assets 2,901,425,000
Current Cash 215,025,000
Current Liabilities 2,490,159,000
Current Debt 30,907,000
Non-Cash Working Capital (NCWC) 227,148,000
Change in NCWC 102,744,000
EBIT 826,137,000
Tax Provision -96,564,000
Depreciation and Amortization 596,182,000
Capital Expenditure -628,604,000
Unlevered Free Cash Flow 896,459,000
Current Assets 2,653,139,000
Current Cash 238,797,000
Current Liabilities 2,368,095,000
Current Debt 78,157,000
Non-Cash Working Capital (NCWC) 124,404,000
Change in NCWC -77,364,000
EBIT 808,057,000
Tax Provision 146,455,000
Depreciation and Amortization 508,212,000
Capital Expenditure -552,729,000
Unlevered Free Cash Flow 458,872,040
Current Assets 2,492,571,000
Current Cash 152,580,000
Current Liabilities 2,184,745,000
Current Debt 46,522,000
Non-Cash Working Capital (NCWC) 201,768,000
Change in NCWC 44,622,000
EBIT 746,314,000
Tax Provision 142,699,000
Depreciation and Amortization 495,765,000
Capital Expenditure -689,146,000
Unlevered Free Cash Flow 350,419,701
Current Assets 2,379,123,000
Current Cash 122,416,000
Current Liabilities 2,180,988,000
Current Debt 81,427,000
Non-Cash Working Capital (NCWC) 157,146,000
Change in NCWC 92,928,000
EBIT 627,938,000
Tax Provision 105,020,000
Depreciation and Amortization 504,033,000
Capital Expenditure -524,384,000
Unlevered Free Cash Flow 507,688,040

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