DCF Tool

WING

Wingstop Inc – Food Service Contractors
Founded in 1994 and headquartered in Dallas, TX, Wingstop Inc. operates and franchises over 1,500 locations worldwide. The Wing Experts are dedicated to Serving the World Flavor through an unparalleled guest experience and offering of classic wings, boneless wings and tenders, always cooked to order and hand-sauced-and-tossed in fans' choice of 11 bold, distinctive flavors. Wingstop's menu also features signature sides including fresh-cut, seasoned fries and freshly-made ranch and bleu cheese dips.
Analysis Results
Intrinsic Value $50.23
Latest Price $138.29
Relative Value 175% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 10.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.8%, 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)
2022 34.0 33.1
2023 37.7 35.7
2024 41.8 38.5
2025 46.3 41.6
2026 51.3 44.8
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 1540 million. This corresponds to a present value of 1310 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 194 million. Adding in the terminal value gives a total present value of 1500 million.

There are presently 29.9 million outstanding shares, so the intrinsic value per share is 50.23.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 70,149,000
Current Cash 48,583,000
Current Liabilities 39,681,000
Current Debt 0
Non-Cash Working Capital (NCWC) -18,115,000
Change in NCWC -3,004,000
EBIT 70,259,000
Tax Provision 16,249,000
Depreciation and Amortization 7,943,000
Capital Expenditure -28,021,000
Unlevered Free Cash Flow 27,796,646
Current Assets 72,620,000
Current Cash 40,858,000
Current Liabilities 50,473,000
Current Debt 3,600,000
Non-Cash Working Capital (NCWC) -15,111,000
Change in NCWC -2,723,000
EBIT 54,297,000
Tax Provision 3,637,000
Depreciation and Amortization 7,518,000
Capital Expenditure -6,052,000
Unlevered Free Cash Flow 45,710,519
Current Assets 30,190,000
Current Cash 12,849,000
Current Liabilities 32,929,000
Current Debt 3,200,000
Non-Cash Working Capital (NCWC) -12,388,000
Change in NCWC -5,719,000
EBIT 42,901,000
Tax Provision 5,289,000
Depreciation and Amortization 5,484,000
Capital Expenditure -22,486,000
Unlevered Free Cash Flow 11,373,347
Current Assets 29,906,000
Current Cash 12,493,000
Current Liabilities 26,482,000
Current Debt 2,400,000
Non-Cash Working Capital (NCWC) -6,669,000
Change in NCWC -3,135,000
EBIT 38,527,000
Tax Provision 5,208,000
Depreciation and Amortization 4,313,000
Capital Expenditure -3,982,000
Unlevered Free Cash Flow 28,271,422
Current Assets 15,908,000
Current Cash 4,063,000
Current Liabilities 18,879,000
Current Debt 3,500,000
Non-Cash Working Capital (NCWC) -3,534,000
Change in NCWC 2,332,000
EBIT 36,280,000
Tax Provision 3,845,000
Depreciation and Amortization 3,376,000
Capital Expenditure -2,535,000
Unlevered Free Cash Flow 34,974,634
Current Assets 11,116,000
Current Cash 3,750,000
Current Liabilities 16,732,000
Current Debt 3,500,000
Non-Cash Working Capital (NCWC) -5,866,000
Change in NCWC -2,226,000
EBIT 29,203,000
Tax Provision 9,119,000
Depreciation and Amortization 3,008,000
Capital Expenditure -2,056,000
Unlevered Free Cash Flow 17,082,987
Current Assets 19,620,000
Current Cash 10,690,000
Current Liabilities 12,570,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,640,000
Change in NCWC -471,000
EBIT 19,718,000
Tax Provision 5,739,000
Depreciation and Amortization 2,682,000
Capital Expenditure -1,915,000
Unlevered Free Cash Flow 12,872,213
Current Assets 18,121,000
Current Cash 9,723,000
Current Liabilities 16,436,000
Current Debt 4,869,000
Non-Cash Working Capital (NCWC) -3,169,000
Change in NCWC -532,000
EBIT 18,066,000
Tax Provision 5,312,000
Depreciation and Amortization 2,904,000
Capital Expenditure -1,510,000
Unlevered Free Cash Flow 12,216,110

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.