Discounted Cash Flow (DCF) Analysis Levered
Capital Southwest Corporation (CSWC)
$21.67
-0.67 (-3.00%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 48.87 | -0.24 | 72.58 | 83 | 61.45 | -4,695.72 | 358,807.05 | -27,417,004.33 | 2,094,975,910.25 | -160,080,365,167.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -94.71 | -47.95 | -68.25 | -182.67 | -227.10 | -182,560.81 | 13,949,755.24 | -1,065,922,477.53 | 81,448,793,090.30 | -6,223,628,862,042.41 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | - | - | - | -2 | -0.28 | 67.17 | -5,132.41 | 392,175.30 | -29,966,723.97 | 2,289,803,950.59 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -94.71 | -47.95 | -68.25 | -184.67 | -227.38 | -182,493.64 | 13,944,622.83 | -1,065,530,302.23 | 81,418,826,366.33 | -6,221,339,058,091.83 |
Weighted Average Cost Of Capital
| Share price | $ 21.67 |
|---|---|
| Beta | 1.239 |
| Diluted Shares Outstanding | 30.02 |
| Cost of Debt | |
| Tax Rate | 17.40 |
| After-tax Cost of Debt | 3.74% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.648 |
| Total Debt | 637.64 |
| Total Equity | 650.44 |
| Total Capital | 1,288.08 |
| Debt Weighting | 49.50 |
| Equity Weighting | 50.50 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 48.87 | -0.24 | 72.58 | 83 | 61.45 | -4,695.72 | 358,807.05 | -27,417,004.33 | 2,094,975,910.25 | -160,080,365,167.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -94.71 | -47.95 | -68.25 | -182.67 | -227.10 | -182,560.81 | 13,949,755.24 | -1,065,922,477.53 | 81,448,793,090.30 | -6,223,628,862,042.41 |
| Capital Expenditure | - | - | - | -2 | -0.28 | 67.17 | -5,132.41 | 392,175.30 | -29,966,723.97 | 2,289,803,950.59 |
| Free Cash Flow | -94.71 | -47.95 | -68.25 | -184.67 | -227.38 | -182,493.64 | 13,944,622.83 | -1,065,530,302.23 | 81,418,826,366.33 | -6,221,339,058,091.83 |
| WACC | ||||||||||
| PV LFCF | -170,188.98 | 12,127,580.33 | -864,205,223.55 | 61,582,825,905.54 | -4,388,360,939,251.48 | |||||
| SUM PV LFCF | -4,327,630,361,178.13 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.23 |
| Free cash flow (t + 1) | -6,345,765,839,253.66 |
| Terminal Value | -121,333,954,861,446.69 |
| Present Value of Terminal Value | -85,585,624,436,644.55 |
Intrinsic Value
| Enterprise Value | -89,913,254,797,822.67 |
|---|---|
| Net Debt | 616.06 |
| Equity Value | -89,913,254,798,438.73 |
| Shares Outstanding | 30.02 |
| Equity Value Per Share | -2,995,557,493,463.09 |