Discounted Cash Flow (DCF) Analysis Levered

Culp, Inc. (CULP)

$4.95

-0.01 (-0.20%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.13 | 4.95 | 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	323.73	296.67	256.17	299.72	294.84	289.95	285.14	280.41	275.75	271.18
Revenue (%)
Operating Cash Flow	27.47	13.87	4.97	21.48	-17.44	9.48	9.33	9.17	9.02	8.87
Operating Cash Flow (%)
Capital Expenditure	-8.01	-3.26	-4.58	-6.66	-5.70	-5.52	-5.43	-5.34	-5.25	-5.16
Capital Expenditure (%)
Free Cash Flow	19.47	10.61	0.38	14.81	-23.14	3.96	3.90	3.83	3.77	3.71

Weighted Average Cost Of Capital

Share price	$ 4.95
Beta	1.207
Diluted Shares Outstanding	12.24
Cost of Debt
Tax Rate	-888.00
After-tax Cost of Debt	0.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.298
Total Debt	10.28
Total Equity	60.60
Total Capital	70.88
Debt Weighting	14.51
Equity Weighting	85.49
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	323.73	296.67	256.17	299.72	294.84	289.95	285.14	280.41	275.75	271.18
Operating Cash Flow	27.47	13.87	4.97	21.48	-17.44	9.48	9.33	9.17	9.02	8.87
Capital Expenditure	-8.01	-3.26	-4.58	-6.66	-5.70	-5.52	-5.43	-5.34	-5.25	-5.16
Free Cash Flow	19.47	10.61	0.38	14.81	-23.14	3.96	3.90	3.83	3.77	3.71
WACC
PV LFCF						2.70	2.46	2.24	2.04	1.86
SUM PV LFCF										15.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.97
Free cash flow (t + 1)	3.78
Terminal Value	63.35
Present Value of Terminal Value	43.18

Intrinsic Value

Enterprise Value	58.54
Net Debt	-4.27
Equity Value	62.81
Shares Outstanding	12.24
Equity Value Per Share	5.13