Discounted Cash Flow (DCF) Analysis Levered

Accuray Incorporated (ARAY)

$ 5.12
-0.17 (-3.21%)
Stock DCF: -0.73 | 5.12 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 383.41404.90418.79382.93396.29400.21404.17408.18412.22416.30
Revenue (%)
Operating Cash Flow -0.3818.33-29.64-1.4738.515.355.405.465.515.57
Operating Cash Flow (%)
Capital Expenditure -5.36-6.61-4.31-3.73-2.32-4.50-4.54-4.59-4.63-4.68
Capital Expenditure (%)
Free Cash Flow -5.7411.72-33.95-5.2036.190.850.860.870.880.89

Weighted Average Cost Of Capital

Share price $ 5.12
Beta 1.873
Diluted Shares Outstanding 92.03
Cost of Debt
Tax Rate -38.43
After-tax Cost of Debt 8.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.321
Total Debt 199.41
Total Equity 471.20
Total Capital 670.61
Debt Weighting 29.74
Equity Weighting 70.26
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 383.41404.90418.79382.93396.29400.21404.17408.18412.22416.30
Operating Cash Flow -0.3818.33-29.64-1.4738.515.355.405.465.515.57
Capital Expenditure -5.36-6.61-4.31-3.73-2.32-4.50-4.54-4.59-4.63-4.68
Free Cash Flow -5.7411.72-33.95-5.2036.190.850.860.870.880.89
WACC
PV LFCF 0.780.710.660.600.56
SUM PV LFCF 3.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.77
Free cash flow (t + 1) 0.93
Terminal Value 19.52
Present Value of Terminal Value 12.25

Intrinsic Value

Enterprise Value 15.56
Net Debt 83.04
Equity Value -67.48
Shares Outstanding 92.03
Equity Value Per Share -0.73