DCF Tool

BECN

Beacon Roofing Supply Inc – Roofing, Siding, and Insulation Material Merchant Wholesalers
Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of roofing materials and complementary building products in North America, operating over 400 branches throughout all 50 states in the U.S. and 6 provinces in Canada. Beacon serves an extensive base of over 90,000 customers, utilizing its vast branch network and diverse service offerings to provide high-quality products and support throughout the entire business lifecycle. Beacon offers its own private label brand, TRI-BUILT, and has a proprietary digital account management suite, Beacon PRO+, which allows customers to manage their businesses online.
Analysis Results
Intrinsic Value $578.12
Latest Price $56.98
Relative Value 90% undervalued
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Cash Flow (Billions)
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 22.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.3%, 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 (billion) Present value (billion)
2022 0.836 0.788
2023 1.02 0.908
2024 1.25 1.05
2025 1.53 1.21
2026 1.87 1.39
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 46.1 billion. This corresponds to a present value of 32.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.34 billion. Adding in the terminal value gives a total present value of 37.6 billion.

There are presently 65.1 million outstanding shares, so the intrinsic value per share is 578.12.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,668,700,000
Current Cash 260,000,000
Current Liabilities 1,463,100,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 960,600,000
Change in NCWC 227,300,000
EBIT 456,800,000
Tax Provision 77,300,000
Depreciation and Amortization 175,200,000
Capital Expenditure -66,500,000
Unlevered Free Cash Flow 674,506,398
Current Assets 2,976,800,000
Current Cash 624,600,000
Current Liabilities 1,631,200,000
Current Debt 12,300,000
Non-Cash Working Capital (NCWC) 733,300,000
Change in NCWC -286,574,000
EBIT 35,100,000
Tax Provision -26,800,000
Depreciation and Amortization 391,100,000
Capital Expenditure -48,500,000
Unlevered Free Cash Flow 91,126,000
Current Assets 2,514,247,000
Current Cash 72,287,000
Current Liabilities 1,440,775,000
Current Debt 18,689,000
Non-Cash Working Capital (NCWC) 1,019,874,000
Change in NCWC 241,345,000
EBIT 147,752,000
Tax Provision -170,000
Depreciation and Amortization 277,761,000
Capital Expenditure -57,031,000
Unlevered Free Cash Flow 609,827,000
Current Assets 2,400,867,000
Current Cash 129,927,000
Current Liabilities 1,512,072,000
Current Debt 19,661,000
Non-Cash Working Capital (NCWC) 778,529,000
Change in NCWC 77,934,000
EBIT 204,626,000
Tax Provision -30,544,000
Depreciation and Amortization 201,503,000
Capital Expenditure -46,010,000
Unlevered Free Cash Flow 438,053,000
Current Assets 1,603,839,000
Current Cash 138,250,000
Current Liabilities 779,135,000
Current Debt 14,141,000
Non-Cash Working Capital (NCWC) 700,595,000
Change in NCWC -48,181,000
EBIT 216,096,000
Tax Provision 62,481,000
Depreciation and Amortization 116,467,000
Capital Expenditure -39,828,000
Unlevered Free Cash Flow 161,895,245
Current Assets 1,302,190,000
Current Cash 31,386,000
Current Liabilities 536,839,000
Current Debt 14,811,000
Non-Cash Working Capital (NCWC) 748,776,000
Change in NCWC 297,493,000
EBIT 204,984,000
Tax Provision 56,615,000
Depreciation and Amortization 100,191,000
Capital Expenditure -26,315,000
Unlevered Free Cash Flow 497,154,127
Current Assets 866,629,000
Current Cash 45,661,000
Current Liabilities 397,245,000
Current Debt 27,560,000
Non-Cash Working Capital (NCWC) 451,283,000
Change in NCWC 8,536,000
EBIT 117,081,000
Tax Provision 43,767,000
Depreciation and Amortization 34,862,000
Capital Expenditure -20,802,000
Unlevered Free Cash Flow 91,354,755
Current Assets 798,338,000
Current Cash 54,472,000
Current Liabilities 336,235,000
Current Debt 35,116,000
Non-Cash Working Capital (NCWC) 442,747,000
Change in NCWC 35,903,000
EBIT 98,863,000
Tax Provision 34,922,000
Depreciation and Amortization 30,294,000
Capital Expenditure -37,239,000
Unlevered Free Cash Flow 88,927,550
Current Assets 705,083,000
Current Cash 47,027,000
Current Liabilities 313,736,000
Current Debt 62,524,000
Non-Cash Working Capital (NCWC) 406,844,000
Change in NCWC 55,291,000
EBIT 129,721,000
Tax Provision 48,867,000
Depreciation and Amortization 30,415,000
Capital Expenditure -26,120,000
Unlevered Free Cash Flow 137,122,367
Current Assets 630,775,000
Current Cash 40,205,000
Current Liabilities 295,949,000
Current Debt 56,932,000
Non-Cash Working Capital (NCWC) 351,553,000
Change in NCWC 68,144,000
EBIT 143,672,000
Tax Provision 50,934,000
Depreciation and Amortization 24,353,000
Capital Expenditure -17,404,000
Unlevered Free Cash Flow 160,916,403

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