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 558.18629.31721.09628.94645.41673.11702732.13763.55796.32
Revenue (%)
Operating Cash Flow 35.4346.2451.0312.61-0.5730.5531.8633.2234.6536.14
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 7.8228.6232.740.10-17.4310.5110.9611.4311.9212.43

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 558.18629.31721.09628.94645.41673.11702732.13763.55796.32
Operating Cash Flow 35.4346.2451.0312.61-0.5730.5531.8633.2234.6536.14
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 7.8228.6232.740.10-17.4310.5110.9611.4311.9212.43
WACC
PV LFCF 8.698.518.338.167.99
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