DCF Tool

MNRO

Monro Inc – General Automotive Repair
Headquartered in Rochester, New York, Monro is a chain of 1,259 company-operated stores, 96 franchised locations, seven wholesale locations and three retread facilities providing automotive undercar repair and tire sales and services. The Company operates in 32 states, serving the MidAtlantic and New England regions and portions of the Great Lakes, Midwest, Southeast and Western United States. The predecessor to the Company was founded by Charles J. August in 1957 as a Midas Muffler franchise. In 1966, Monro began to diversify into a full line of undercar repair services. The Company has experienced significant growth in recent years through
Analysis Results
Intrinsic Value $77.42
Latest Price $43.46
Relative Value 44% 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 6.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.8%, 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)
2023 113 106
2024 121 105
2025 129 105
2026 138 105
2027 147 105
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2960 million. This corresponds to a present value of 1970 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 526 million. Adding in the terminal value gives a total present value of 2490 million.

There are presently 32.2 million outstanding shares, so the intrinsic value per share is 77.42.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 245,502,000
Current Cash 7,948,000
Current Liabilities 321,964,000
Current Debt 42,092,000
Non-Cash Working Capital (NCWC) -42,318,000
Change in NCWC -26,070,000
EBIT 101,298,000
Tax Provision 15,717,000
Depreciation and Amortization 81,169,000
Capital Expenditure -27,830,000
Unlevered Free Cash Flow 107,966,616
Current Assets 266,525,000
Current Cash 29,960,000
Current Liabilities 290,616,000
Current Debt 37,803,000
Non-Cash Working Capital (NCWC) -16,248,000
Change in NCWC -44,113,000
EBIT 72,238,000
Tax Provision 9,872,000
Depreciation and Amortization 77,304,000
Capital Expenditure -51,725,000
Unlevered Free Cash Flow 37,566,471
Current Assets 596,020,000
Current Cash 345,476,000
Current Liabilities 254,936,000
Current Debt 32,257,000
Non-Cash Working Capital (NCWC) 27,865,000
Change in NCWC -9,610,000
EBIT 101,702,000
Tax Provision 16,250,000
Depreciation and Amortization 64,986,000
Capital Expenditure -55,918,000
Unlevered Free Cash Flow 78,909,178
Current Assets 239,907,000
Current Cash 6,214,000
Current Liabilities 218,447,000
Current Debt 22,229,000
Non-Cash Working Capital (NCWC) 37,475,000
Change in NCWC 7,144,000
EBIT 126,743,000
Tax Provision 20,608,000
Depreciation and Amortization 55,531,000
Capital Expenditure -44,468,000
Unlevered Free Cash Flow 118,924,494
Current Assets 207,256,000
Current Cash 1,909,000
Current Liabilities 194,005,000
Current Debt 18,989,000
Non-Cash Working Capital (NCWC) 30,331,000
Change in NCWC 10,691,000
EBIT 127,296,000
Tax Provision 39,519,000
Depreciation and Amortization 49,335,000
Capital Expenditure -39,122,000
Unlevered Free Cash Flow 99,573,454
Current Assets 199,230,000
Current Cash 8,995,000
Current Liabilities 185,893,000
Current Debt 15,298,000
Non-Cash Working Capital (NCWC) 19,640,000
Change in NCWC 13,877,000
EBIT 116,384,000
Tax Provision 35,718,000
Depreciation and Amortization 44,629,000
Capital Expenditure -34,640,000
Unlevered Free Cash Flow 97,501,823
Current Assets 170,075,000
Current Cash 7,985,000
Current Liabilities 167,571,000
Current Debt 11,244,000
Non-Cash Working Capital (NCWC) 5,763,000
Change in NCWC -14,906,000
EBIT 120,589,000
Tax Provision 38,616,000
Depreciation and Amortization 39,769,000
Capital Expenditure -36,834,000
Unlevered Free Cash Flow 64,445,920
Current Assets 175,284,000
Current Cash 7,730,000
Current Liabilities 155,793,000
Current Debt 8,908,000
Non-Cash Working Capital (NCWC) 20,669,000
Change in NCWC -17,053,000
EBIT 109,789,000
Tax Provision 37,556,000
Depreciation and Amortization 35,721,000
Capital Expenditure -34,750,000
Unlevered Free Cash Flow 52,206,967
Current Assets 168,116,000
Current Cash 1,205,000
Current Liabilities 136,741,000
Current Debt 7,552,000
Non-Cash Working Capital (NCWC) 37,722,000
Change in NCWC 4,260,000
EBIT 95,347,000
Tax Provision 32,077,000
Depreciation and Amortization 31,688,000
Capital Expenditure -32,150,000
Unlevered Free Cash Flow 63,801,955
Current Assets 166,410,000
Current Cash 1,463,000
Current Liabilities 136,399,000
Current Debt 4,914,000
Non-Cash Working Capital (NCWC) 33,462,000
Change in NCWC 8,305,000
EBIT 73,705,000
Tax Provision 24,257,000
Depreciation and Amortization 27,500,000
Capital Expenditure -34,185,000
Unlevered Free Cash Flow 48,570,208

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