Discounted Cash Flow (DCF) Analysis Levered

Ducommun Incorporated (DCO)

$42.23

-1.63 (-3.72%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.64 | 42.23 | overvalue

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	558.18	629.31	721.09	628.94	645.41	673.11	702	732.13	763.55	796.32
Revenue (%)
Operating Cash Flow	35.43	46.24	51.03	12.61	-0.57	30.55	31.86	33.22	34.65	36.14
Operating Cash Flow (%)
Capital Expenditure	-27.61	-17.62	-18.29	-12.51	-16.86	-20.04	-20.90	-21.79	-22.73	-23.70
Capital Expenditure (%)
Free Cash Flow	7.82	28.62	32.74	0.10	-17.43	10.51	10.96	11.43	11.92	12.43

Weighted Average Cost Of Capital

Share price	$ 42.23
Beta	1.295
Diluted Shares Outstanding	11.93
Cost of Debt
Tax Rate	20.50
After-tax Cost of Debt	2.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.910
Total Debt	320.59
Total Equity	503.89
Total Capital	824.48
Debt Weighting	38.88
Equity Weighting	61.12
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	558.18	629.31	721.09	628.94	645.41	673.11	702	732.13	763.55	796.32
Operating Cash Flow	35.43	46.24	51.03	12.61	-0.57	30.55	31.86	33.22	34.65	36.14
Capital Expenditure	-27.61	-17.62	-18.29	-12.51	-16.86	-20.04	-20.90	-21.79	-22.73	-23.70
Free Cash Flow	7.82	28.62	32.74	0.10	-17.43	10.51	10.96	11.43	11.92	12.43
WACC
PV LFCF						8.69	8.51	8.33	8.16	7.99
SUM PV LFCF										47.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.52
Free cash flow (t + 1)	12.68
Terminal Value	280.54
Present Value of Terminal Value	204.57

Intrinsic Value

Enterprise Value	251.87
Net Debt	244.28
Equity Value	7.60
Shares Outstanding	11.93
Equity Value Per Share	0.64