Discounted Cash Flow (DCF) Analysis Levered

Daily Journal Corporation (DJCO)

$350.1

+11.55 (+3.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.02 | 350.1 | overvalue

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 48.6649.9449.3954.0167.7173.8580.5487.8495.80104.49
Revenue (%)
Operating Cash Flow 1.622.343.29-5.2615.084.024.384.785.215.68
Operating Cash Flow (%)
Capital Expenditure -0.16-0.18-0.03-0.04-0.09-0.14-0.15-0.17-0.18-0.20
Capital Expenditure (%)
Free Cash Flow 1.452.153.26-5.30153.874.224.615.035.48

Weighted Average Cost Of Capital

Share price $ 350.1
Beta 0.917
Diluted Shares Outstanding 1.38
Cost of Debt
Tax Rate 23.66
After-tax Cost of Debt 4.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.487
Total Debt 76.28
Total Equity 482.10
Total Capital 558.37
Debt Weighting 13.66
Equity Weighting 86.34
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 48.6649.9449.3954.0167.7173.8580.5487.8495.80104.49
Operating Cash Flow 1.622.343.29-5.2615.084.024.384.785.215.68
Capital Expenditure -0.16-0.18-0.03-0.04-0.09-0.14-0.15-0.17-0.18-0.20
Free Cash Flow 1.452.153.26-5.30153.874.224.615.035.48
WACC
PV LFCF 3.593.633.673.703.74
SUM PV LFCF 18.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.92
Free cash flow (t + 1) 5.51
Terminal Value 74.23
Present Value of Terminal Value 50.71

Intrinsic Value

Enterprise Value 69.04
Net Debt 55.24
Equity Value 13.80
Shares Outstanding 1.38
Equity Value Per Share 10.02