Discounted Cash Flow (DCF) Analysis Levered

ARC Group Worldwide, Inc. (ARCW)

$0.96

-0.02 (-2.04%)

All numbers are in Millions, Currency in USD

Stock DCF: -2.08 | 0.96 | overvalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	103.84	99.07	82.44	79.83	48.53	40.79	34.29	28.82	24.23	20.37
Revenue (%)
Operating Cash Flow	6.47	2.85	-0.56	-5	3.14	0.70	0.59	0.50	0.42	0.35
Operating Cash Flow (%)
Capital Expenditure	-2.63	-6.64	-5.14	-1.92	-1.20	-1.66	-1.40	-1.17	-0.99	-0.83
Capital Expenditure (%)
Free Cash Flow	3.83	-3.79	-5.70	-6.92	1.94	-0.96	-0.80	-0.68	-0.57	-0.48

Weighted Average Cost Of Capital

Share price	$ 0.96
Beta	0.819
Diluted Shares Outstanding	23.36
Cost of Debt
Tax Rate	-1.13
After-tax Cost of Debt	8.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.559
Total Debt	44
Total Equity	22.42
Total Capital	66.43
Debt Weighting	66.24
Equity Weighting	33.76
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	103.84	99.07	82.44	79.83	48.53	40.79	34.29	28.82	24.23	20.37
Operating Cash Flow	6.47	2.85	-0.56	-5	3.14	0.70	0.59	0.50	0.42	0.35
Capital Expenditure	-2.63	-6.64	-5.14	-1.92	-1.20	-1.66	-1.40	-1.17	-0.99	-0.83
Free Cash Flow	3.83	-3.79	-5.70	-6.92	1.94	-0.96	-0.80	-0.68	-0.57	-0.48
WACC
PV LFCF						-0.89	-0.69	-0.54	-0.42	-0.33
SUM PV LFCF										-2.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.90
Free cash flow (t + 1)	-0.49
Terminal Value	-8.25
Present Value of Terminal Value	-5.64

Intrinsic Value

Enterprise Value	-8.50
Net Debt	40.06
Equity Value	-48.56
Shares Outstanding	23.36
Equity Value Per Share	-2.08