Discounted Cash Flow (DCF) Analysis Levered

China Automotive Systems, Inc. (CAAS)

$3.09

+0.04 (+1.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.79 | 3.09 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 496.16431.43417.64497.99502.97508513.07518.20523.38528.61
Revenue (%)
Operating Cash Flow 12.5330.2957.4328.2736.4336.8037.1637.5437.9138.29
Operating Cash Flow (%)
Capital Expenditure -25.95-35.90-16.570.15-21.99-22.21-22.43-22.66-22.88-23.11
Capital Expenditure (%)
Free Cash Flow -13.43-5.6140.8628.4214.4414.5914.7314.8815.0315.18

Weighted Average Cost Of Capital

Share price $ 3.09
Beta 2.389
Diluted Shares Outstanding 30.86
Cost of Debt
Tax Rate -31.56
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.099
Total Debt 0.23
Total Equity 95.34
Total Capital 95.57
Debt Weighting 0.24
Equity Weighting 99.76
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 496.16431.43417.64497.99502.97508513.07518.20523.38528.61
Operating Cash Flow 12.5330.2957.4328.2736.4336.8037.1637.5437.9138.29
Capital Expenditure -25.95-35.90-16.570.15-21.99-22.21-22.43-22.66-22.88-23.11
Free Cash Flow -13.43-5.6140.8628.4214.4414.5914.7314.8815.0315.18
WACC
PV LFCF 14.4412.7911.3210.028.877.86
SUM PV LFCF 50.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.08
Free cash flow (t + 1) 15.48
Terminal Value 128.15
Present Value of Terminal Value 66.33

Intrinsic Value

Enterprise Value 117.18
Net Debt 0.15
Equity Value 117.03
Shares Outstanding 30.86
Equity Value Per Share 3.79