Discounted Cash Flow (DCF) Analysis Levered

Consumer Portfolio Services, Inc. (CPSS)

$11.59

-0.28 (-2.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 696.93 | 11.59 | 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	287.42	234.03	169.82	192.57	575	813.59	1,151.17	1,628.83	2,304.70	3,260.99
Revenue (%)
Operating Cash Flow	216.20	216.78	238.77	198.19	215.93	730.47	1,033.57	1,462.44	2,069.26	2,927.86
Operating Cash Flow (%)
Capital Expenditure	-1.08	-0.75	-0.02	-1.98	-2.50	-3.53	-5	-7.07	-10	-14.15
Capital Expenditure (%)
Free Cash Flow	215.13	216.03	238.74	196.22	213.44	726.94	1,028.58	1,455.37	2,059.26	2,913.71

Weighted Average Cost Of Capital

Share price	$ 11.59
Beta	2.198
Diluted Shares Outstanding	25.78
Cost of Debt
Tax Rate	20.38
After-tax Cost of Debt	3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.033
Total Debt	-
Total Equity	298.79
Total Capital	298.79
Debt Weighting	0.00
Equity Weighting	100.00
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	287.42	234.03	169.82	192.57	575	813.59	1,151.17	1,628.83	2,304.70	3,260.99
Operating Cash Flow	216.20	216.78	238.77	198.19	215.93	730.47	1,033.57	1,462.44	2,069.26	2,927.86
Capital Expenditure	-1.08	-0.75	-0.02	-1.98	-2.50	-3.53	-5	-7.07	-10	-14.15
Free Cash Flow	215.13	216.03	238.74	196.22	213.44	726.94	1,028.58	1,455.37	2,059.26	2,913.71
WACC
PV LFCF						490.28	608.36	754.88	936.69	1,162.29
SUM PV LFCF										5,139.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	14.03
Free cash flow (t + 1)	2,971.99
Terminal Value	24,704.80
Present Value of Terminal Value	12,814.03

Intrinsic Value

Enterprise Value	17,953.40
Net Debt	-13.49
Equity Value	17,966.89
Shares Outstanding	25.78
Equity Value Per Share	696.93