Discounted Cash Flow (DCF) Analysis Levered

Crawford & Company (CRD-B)

$5.77

+0.52 (+9.90%)

All numbers are in Millions, Currency in USD

Stock DCF: 24.17 | 5.77 | undervalue

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	1,163.71	1,122.98	1,047.63	1,016.20	1,139.23	1,136.09	1,132.96	1,129.83	1,126.72	1,123.61
Revenue (%)
Operating Cash Flow	40.76	52.42	75.22	93.18	54.32	66.55	66.36	66.18	66	65.82
Operating Cash Flow (%)
Capital Expenditure	-44.91	-30.02	-21.12	-37.38	-30.95	-33.96	-33.86	-33.77	-33.68	-33.58
Capital Expenditure (%)
Free Cash Flow	-4.15	22.40	54.09	55.80	23.37	32.59	32.50	32.41	32.32	32.23

Weighted Average Cost Of Capital

Share price	$ 5.77
Beta	0.521
Diluted Shares Outstanding	53.38
Cost of Debt
Tax Rate	30.03
After-tax Cost of Debt	1.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.076
Total Debt	288.67
Total Equity	308.03
Total Capital	596.69
Debt Weighting	48.38
Equity Weighting	51.62
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	1,163.71	1,122.98	1,047.63	1,016.20	1,139.23	1,136.09	1,132.96	1,129.83	1,126.72	1,123.61
Operating Cash Flow	40.76	52.42	75.22	93.18	54.32	66.55	66.36	66.18	66	65.82
Capital Expenditure	-44.91	-30.02	-21.12	-37.38	-30.95	-33.96	-33.86	-33.77	-33.68	-33.58
Free Cash Flow	-4.15	22.40	54.09	55.80	23.37	32.59	32.50	32.41	32.32	32.23
WACC
PV LFCF						31.35	30.07	28.85	27.67	26.54
SUM PV LFCF										144.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.96
Free cash flow (t + 1)	32.88
Terminal Value	1,677.37
Present Value of Terminal Value	1,381.33

Intrinsic Value

Enterprise Value	1,525.81
Net Debt	235.44
Equity Value	1,290.37
Shares Outstanding	53.38
Equity Value Per Share	24.17