Discounted Cash Flow (DCF) Analysis Levered

Advent Convertible and Income Fund (AVK)

$11.48

+0.04 (+0.35%)

All numbers are in Millions, Currency in USD

Stock DCF: -8.54 | 11.48 | 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	60.76	-13.35	56.95	43.13	193.70	36.91	7.03	1.34	0.26	0.05
Revenue (%)
Operating Cash Flow	122.14	31.50	49.21	111.26	48.85	24.70	4.71	0.90	0.17	0.03
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	24.70	4.71	0.90	0.17	0.03

Weighted Average Cost Of Capital

Share price	$ 11.48
Beta	1.327
Diluted Shares Outstanding	34.53
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	2.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.006
Total Debt	324.03
Total Equity	396.38
Total Capital	720.41
Debt Weighting	44.98
Equity Weighting	55.02
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	60.76	-13.35	56.95	43.13	193.70	36.91	7.03	1.34	0.26	0.05
Operating Cash Flow	122.14	31.50	49.21	111.26	48.85	24.70	4.71	0.90	0.17	0.03
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	24.70	4.71	0.90	0.17	0.03
WACC
PV LFCF						23.13	4.13	0.74	0.13	0.02
SUM PV LFCF										28.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.80
Free cash flow (t + 1)	0.03
Terminal Value	0.69
Present Value of Terminal Value	0.50

Intrinsic Value

Enterprise Value	28.64
Net Debt	323.37
Equity Value	-294.73
Shares Outstanding	34.53
Equity Value Per Share	-8.54