RSG Intrinsic Value

RSG

Republic Services, Inc. – Solid Waste Landfill

our company today: republic services, is an industry leader in u.s. recycling and waste services. through its subsidiaries, republic’s collection companies, transfer stations, recycling centers and landfills focus on providing reliable environmental services and solutions for 14 million commercial, industrial, municipal and residential customers. our customers: we want our customers to feel at ease because of the reliability of our services, uplifted by the environmental impact they can make partnering with republic, and delighted by the simple solutions and array of services we provide. we’ll handle it from here™, republic’s tagline, lets our customers know that they can count on us to provide an effortless experience; backs the promise that we will be on-time, never miss a pickup and leave the area clean; supports our promise to deliver superior products and services to meet their customers’ needs; and remind them about our environmental commitment. our environmental commitment: we b

Analysis Results

Intrinsic Value	$188.24
Latest Price	$163.37
Relative Value	13% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 5.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.6%, 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)
2023	1.72	1.66
2024	1.82	1.68
2025	1.92	1.71
2026	2.03	1.73
2027	2.15	1.76

Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 64.4 billion. This corresponds to a present value of 50.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.54 billion. Adding in the terminal value gives a total present value of 59.2 billion.

There are presently 315.0 million outstanding shares, so the intrinsic value per share is 188.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	2,357,100,000
Current Cash	143,400,000
Current Liabilities	3,390,700,000
Current Debt	456,000,000
Non-Cash Working Capital (NCWC)	-721,000,000
Change in NCWC	4,600,000
EBIT	2,245,200,000
Tax Provision	343,900,000
Depreciation and Amortization	1,441,200,000
Capital Expenditure	-1,454,000,000
Unlevered Free Cash Flow	1,815,419,721

Current Assets	1,710,800,000
Current Cash	29,000,000
Current Liabilities	2,415,600,000
Current Debt	8,200,000
Non-Cash Working Capital (NCWC)	-725,600,000
Change in NCWC	-95,300,000
EBIT	1,904,800,000
Tax Provision	282,800,000
Depreciation and Amortization	1,268,200,000
Capital Expenditure	-1,316,300,000
Unlevered Free Cash Flow	1,419,404,291

Current Assets	1,521,800,000
Current Cash	38,200,000
Current Liabilities	2,282,000,000
Current Debt	168,100,000
Non-Cash Working Capital (NCWC)	-630,300,000
Change in NCWC	-54,500,000
EBIT	1,723,100,000
Tax Provision	173,100,000
Depreciation and Amortization	1,158,800,000
Capital Expenditure	-1,194,600,000
Unlevered Free Cash Flow	1,371,779,075

Current Assets	1,606,000,000
Current Cash	47,100,000
Current Liabilities	3,064,600,000
Current Debt	929,900,000
Non-Cash Working Capital (NCWC)	-575,800,000
Change in NCWC	-41,800,000
EBIT	1,674,500,000
Tax Provision	222,000,000
Depreciation and Amortization	1,122,400,000
Capital Expenditure	-1,207,100,000
Unlevered Free Cash Flow	1,261,120,080

Current Assets	1,564,400,000
Current Cash	70,500,000
Current Liabilities	2,718,600,000
Current Debt	690,700,000
Non-Cash Working Capital (NCWC)	-534,000,000
Change in NCWC	40,600,000
EBIT	1,681,500,000
Tax Provision	283,300,000
Depreciation and Amortization	1,114,100,000
Capital Expenditure	-1,071,800,000
Unlevered Free Cash Flow	1,403,760,322

Current Assets	1,436,800,000
Current Cash	83,300,000
Current Liabilities	2,634,800,000
Current Debt	706,700,000
Non-Cash Working Capital (NCWC)	-574,600,000
Change in NCWC	14,900,000
EBIT	1,626,000,000
Tax Provision	3,100,000
Depreciation and Amortization	1,116,100,000
Capital Expenditure	-989,800,000
Unlevered Free Cash Flow	1,763,268,481

Current Assets	1,284,500,000
Current Cash	67,800,000
Current Liabilities	1,812,000,000
Current Debt	5,800,000
Non-Cash Working Capital (NCWC)	-589,500,000
Change in NCWC	41,900,000
EBIT	1,577,600,000
Tax Provision	352,700,000
Depreciation and Amortization	1,070,200,000
Capital Expenditure	-927,800,000
Unlevered Free Cash Flow	1,185,836,722

Current Assets	1,230,300,000
Current Cash	32,400,000
Current Liabilities	1,834,800,000
Current Debt	5,500,000
Non-Cash Working Capital (NCWC)	-631,400,000
Change in NCWC	-131,600,000
EBIT	1,563,300,000
Tax Provision	445,500,000
Depreciation and Amortization	1,050,000,000
Capital Expenditure	-945,600,000
Unlevered Free Cash Flow	953,735,128

Current Assets	1,391,000,000
Current Cash	75,200,000
Current Liabilities	1,826,000,000
Current Debt	10,400,000
Non-Cash Working Capital (NCWC)	-499,800,000
Change in NCWC	-7,000,000
EBIT	1,256,400,000
Tax Provision	337,400,000
Depreciation and Amortization	984,900,000
Capital Expenditure	-862,500,000
Unlevered Free Cash Flow	892,968,688

Current Assets	1,421,900,000
Current Cash	213,300,000
Current Liabilities	1,717,100,000
Current Debt	15,700,000
Non-Cash Working Capital (NCWC)	-492,800,000
Change in NCWC	19,100,000
EBIT	1,374,700,000
Tax Provision	262,100,000
Depreciation and Amortization	954,000,000
Capital Expenditure	-880,800,000
Unlevered Free Cash Flow	1,043,704,804

Current Assets	1,231,300,000
Current Cash	67,600,000
Current Liabilities	1,695,000,000
Current Debt	19,400,000
Non-Cash Working Capital (NCWC)	-511,900,000
Change in NCWC	151,400,000
EBIT	1,364,800,000
Tax Provision	251,800,000
Depreciation and Amortization	926,900,000
Capital Expenditure	-903,500,000
Unlevered Free Cash Flow	1,122,490,350

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