DCF Tool

LAMR

Lamar Advertising Co – Other Financial Vehicles
Founded in 1902, Lamar Advertising Company is one of the largest outdoor advertising companies in North America, with over 354,500 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 3,600 displays.
Analysis Results
Intrinsic Value $156.11
Latest Price $82.49
Relative Value 47% undervalued
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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 6.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.9%, 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 669 622
2023 715 619
2024 764 615
2025 816 612
2026 872 608
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 16200 million. This corresponds to a present value of 10500 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3080 million. Adding in the terminal value gives a total present value of 13600 million.

There are presently 87.1 million outstanding shares, so the intrinsic value per share is 156.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 388,607,000
Current Cash 99,788,000
Current Liabilities 662,965,000
Current Debt 176,109,000
Non-Cash Working Capital (NCWC) -198,037,000
Change in NCWC -32,931,000
EBIT 522,456,000
Tax Provision 9,256,000
Depreciation and Amortization 271,294,000
Capital Expenditure -126,090,000
Unlevered Free Cash Flow 622,558,617
Current Assets 380,570,000
Current Cash 121,569,000
Current Liabilities 547,872,000
Current Debt 123,765,000
Non-Cash Working Capital (NCWC) -165,106,000
Change in NCWC -2,793,000
EBIT 401,081,000
Tax Provision 4,660,000
Depreciation and Amortization 251,296,000
Capital Expenditure -62,272,000
Unlevered Free Cash Flow 579,776,956
Current Assets 310,169,000
Current Cash 26,188,000
Current Liabilities 672,808,000
Current Debt 226,514,000
Non-Cash Working Capital (NCWC) -162,313,000
Change in NCWC -253,573,000
EBIT 510,500,000
Tax Provision -4,222,000
Depreciation and Amortization 250,028,000
Capital Expenditure -140,956,000
Unlevered Free Cash Flow 365,999,000
Current Assets 363,669,000
Current Cash 21,494,000
Current Liabilities 455,035,000
Current Debt 204,120,000
Non-Cash Working Capital (NCWC) 91,260,000
Change in NCWC 94,542,000
EBIT 467,789,000
Tax Provision 10,697,000
Depreciation and Amortization 225,261,000
Capital Expenditure -117,638,000
Unlevered Free Cash Flow 654,115,191
Current Assets 420,519,000
Current Cash 115,471,000
Current Liabilities 325,994,000
Current Debt 17,664,000
Non-Cash Working Capital (NCWC) -3,282,000
Change in NCWC -40,179,000
EBIT 450,703,000
Tax Provision 9,230,000
Depreciation and Amortization 211,104,000
Capital Expenditure -109,329,000
Unlevered Free Cash Flow 499,573,664
Current Assets 315,835,000
Current Cash 35,530,000
Current Liabilities 277,324,000
Current Debt 33,916,000
Non-Cash Working Capital (NCWC) 36,897,000
Change in NCWC -2,187,000
EBIT 423,950,000
Tax Provision 13,356,000
Depreciation and Amortization 204,958,000
Capital Expenditure -107,612,000
Unlevered Free Cash Flow 500,970,271
Current Assets 281,732,000
Current Cash 22,327,000
Current Liabilities 241,653,000
Current Debt 21,332,000
Non-Cash Working Capital (NCWC) 39,084,000
Change in NCWC 1,691,000
EBIT 374,262,000
Tax Provision 22,058,000
Depreciation and Amortization 191,433,000
Capital Expenditure -110,425,000
Unlevered Free Cash Flow 427,956,575
Current Assets 273,144,000
Current Cash 26,035,000
Current Liabilities 225,341,000
Current Debt 15,625,000
Non-Cash Working Capital (NCWC) 37,393,000
Change in NCWC -22,035,000
EBIT 275,478,000
Tax Provision -110,092,000
Depreciation and Amortization 258,435,000
Capital Expenditure -107,573,000
Unlevered Free Cash Flow 404,305,000
Current Assets 282,058,000
Current Cash 33,212,000
Current Liabilities 245,353,000
Current Debt 55,935,000
Non-Cash Working Capital (NCWC) 59,428,000
Change in NCWC -18,573,000
EBIT 219,633,000
Tax Provision 22,841,000
Depreciation and Amortization 300,579,000
Capital Expenditure -105,650,000
Unlevered Free Cash Flow 316,334,548
Current Assets 301,235,000
Current Cash 58,911,000
Current Liabilities 197,457,000
Current Debt 33,134,000
Non-Cash Working Capital (NCWC) 78,001,000
Change in NCWC -1,087,000
EBIT 203,874,000
Tax Provision 9,476,000
Depreciation and Amortization 296,083,000
Capital Expenditure -105,570,000
Unlevered Free Cash Flow 293,185,473

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