Discounted Cash Flow (DCF) Analysis Levered

American Outdoor Brands, Inc. (AOUT)

$7.51

+0.10 (+1.35%)

All numbers are in Millions, Currency in USD

Stock DCF: 30.06 | 7.51 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	177.36	167.38	276.69	247.53	288.07	335.25	390.16	454.07	528.44
Revenue (%)
Operating Cash Flow	3.81	8.45	33.32	-17.95	8.63	10.05	11.69	13.61	15.83
Operating Cash Flow (%)
Capital Expenditure	-2.75	-1.86	-4.18	-6.59	-4.92	-5.73	-6.67	-7.76	-9.03
Capital Expenditure (%)
Free Cash Flow	1.06	6.58	29.14	-24.54	3.71	4.32	5.02	5.84	6.80

Weighted Average Cost Of Capital

Share price	$ 7.51
Beta	0.207
Diluted Shares Outstanding	13.93
Cost of Debt
Tax Rate	-16.83
After-tax Cost of Debt	0.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.676
Total Debt	49.58
Total Equity	104.61
Total Capital	154.19
Debt Weighting	32.15
Equity Weighting	67.85
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	177.36	167.38	276.69	247.53	288.07	335.25	390.16	454.07	528.44
Operating Cash Flow	3.81	8.45	33.32	-17.95	8.63	10.05	11.69	13.61	15.83
Capital Expenditure	-2.75	-1.86	-4.18	-6.59	-4.92	-5.73	-6.67	-7.76	-9.03
Free Cash Flow	1.06	6.58	29.14	-24.54	3.71	4.32	5.02	5.84	6.80
WACC
PV LFCF					3.47	3.91	4.40	4.95	5.57
SUM PV LFCF									23.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.38
Free cash flow (t + 1)	6.94
Terminal Value	502.75
Present Value of Terminal Value	425.76

Intrinsic Value

Enterprise Value	448.81
Net Debt	30.05
Equity Value	418.76
Shares Outstanding	13.93
Equity Value Per Share	30.06