Discounted Cash Flow (DCF) Analysis Levered

Cango Inc. (CANG)

$1.15

+0.01 (+0.59%)
All numbers are in Millions, Currency in USD
Stock DCF: -0.31 | 1.15 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 174.63230.41328.39627.47316.87408.80527.40680.40877.801,132.45
Revenue (%)
Operating Cash Flow 29.5767.66-99.46-64.704.515.827.519.6912.5116.13
Operating Cash Flow (%)
Capital Expenditure -2.30-6.88-0.86-3.03-4-5.16-6.66-8.59-11.08-14.30
Capital Expenditure (%)
Free Cash Flow 27.2660.78-100.32-67.730.510.660.861.101.421.84

Weighted Average Cost Of Capital

Share price $ 1.15
Beta 0.761
Diluted Shares Outstanding 137.04
Cost of Debt
Tax Rate -27.07
After-tax Cost of Debt 1.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.402
Total Debt 172.28
Total Equity 157.60
Total Capital 329.88
Debt Weighting 52.23
Equity Weighting 47.77
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 174.63230.41328.39627.47316.87408.80527.40680.40877.801,132.45
Operating Cash Flow 29.5767.66-99.46-64.704.515.827.519.6912.5116.13
Capital Expenditure -2.30-6.88-0.86-3.03-4-5.16-6.66-8.59-11.08-14.30
Free Cash Flow 27.2660.78-100.32-67.730.510.660.861.101.421.84
WACC
PV LFCF 0.610.750.931.151.42
SUM PV LFCF 5.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.35
Free cash flow (t + 1) 1.87
Terminal Value 79.77
Present Value of Terminal Value 64.47

Intrinsic Value

Enterprise Value 69.55
Net Debt 111.65
Equity Value -42.10
Shares Outstanding 137.04
Equity Value Per Share -0.31