Discounted Cash Flow (DCF) Analysis Levered

Computer Task Group, Incorporated (CTG)

$6.75

+0.18 (+2.74%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.77 | 6.75 | 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 301.21358.77394.17366.09392.29420.73451.25483.97519.07556.71
Revenue (%)
Operating Cash Flow 9.23-0.308.5330.747.4112.9813.9214.9316.0217.18
Operating Cash Flow (%)
Capital Expenditure -2.51-2.25-2.44-2.88-2.81-3.01-3.23-3.47-3.72-3.99
Capital Expenditure (%)
Free Cash Flow 6.72-2.556.0927.854.609.9710.6911.4712.3013.19

Weighted Average Cost Of Capital

Share price $ 6.75
Beta 0.703
Diluted Shares Outstanding 14.97
Cost of Debt
Tax Rate -16.98
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.104
Total Debt 22.06
Total Equity 101.05
Total Capital 123.11
Debt Weighting 17.92
Equity Weighting 82.08
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 301.21358.77394.17366.09392.29420.73451.25483.97519.07556.71
Operating Cash Flow 9.23-0.308.5330.747.4112.9813.9214.9316.0217.18
Capital Expenditure -2.51-2.25-2.44-2.88-2.81-3.01-3.23-3.47-3.72-3.99
Free Cash Flow 6.72-2.556.0927.854.609.9710.6911.4712.3013.19
WACC
PV LFCF 9.349.399.439.489.52
SUM PV LFCF 47.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.73
Free cash flow (t + 1) 13.45
Terminal Value 284.44
Present Value of Terminal Value 205.38

Intrinsic Value

Enterprise Value 252.54
Net Debt -13.53
Equity Value 266.06
Shares Outstanding 14.97
Equity Value Per Share 17.77