Discounted Cash Flow (DCF) Analysis Levered

Clearfield, Inc. (CLFD)

$39.11

+0.57 (+1.48%)

All numbers are in Millions, Currency in USD

Stock DCF: 63.72 | 39.11 | undervalue

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	77.65	85.03	93.07	140.76	270.88	381.02	535.95	753.87	1,060.40	1,491.56
Revenue (%)
Operating Cash Flow	4.55	14.73	6.66	10.90	1	29.30	41.21	57.97	81.54	114.70
Operating Cash Flow (%)
Capital Expenditure	-1.19	-2.51	-1.81	-2.05	-9.15	-8.58	-12.07	-16.97	-23.87	-33.58
Capital Expenditure (%)
Free Cash Flow	3.36	12.22	4.85	8.86	-8.15	20.72	29.15	41	57.67	81.11

Weighted Average Cost Of Capital

Share price	$ 39.11
Beta	1.303
Diluted Shares Outstanding	13.91
Cost of Debt
Tax Rate	22.67
After-tax Cost of Debt	0.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.787
Total Debt	36.85
Total Equity	543.86
Total Capital	580.72
Debt Weighting	6.35
Equity Weighting	93.65
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	77.65	85.03	93.07	140.76	270.88	381.02	535.95	753.87	1,060.40	1,491.56
Operating Cash Flow	4.55	14.73	6.66	10.90	1	29.30	41.21	57.97	81.54	114.70
Capital Expenditure	-1.19	-2.51	-1.81	-2.05	-9.15	-8.58	-12.07	-16.97	-23.87	-33.58
Free Cash Flow	3.36	12.22	4.85	8.86	-8.15	20.72	29.15	41	57.67	81.11
WACC
PV LFCF						18.97	24.44	31.48	40.54	52.21
SUM PV LFCF										167.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.21
Free cash flow (t + 1)	82.74
Terminal Value	1,147.52
Present Value of Terminal Value	738.67

Intrinsic Value

Enterprise Value	906.31
Net Debt	20.20
Equity Value	886.10
Shares Outstanding	13.91
Equity Value Per Share	63.72