Discounted Cash Flow (DCF) Analysis Levered

DLH Holdings Corp. (DLHC)

$18.4

+0.44 (+2.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.03 | 18.4 | 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 115.66133.24160.39209.18246.09297.55359.77435525.96635.94
Revenue (%)
Operating Cash Flow 6.5214.0818.0419.4545.6732.9139.8048.1258.1870.34
Operating Cash Flow (%)
Capital Expenditure -1.06-0.65-0.41-0.15-0.10-1.06-1.28-1.55-1.87-2.26
Capital Expenditure (%)
Free Cash Flow 5.4613.4217.6319.3045.5631.8638.5246.5756.3168.08

Weighted Average Cost Of Capital

Share price $ 18.4
Beta 1.331
Diluted Shares Outstanding 13.60
Cost of Debt
Tax Rate 24.51
After-tax Cost of Debt 3.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.075
Total Debt 66.27
Total Equity 250.18
Total Capital 316.46
Debt Weighting 20.94
Equity Weighting 79.06
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 115.66133.24160.39209.18246.09297.55359.77435525.96635.94
Operating Cash Flow 6.5214.0818.0419.4545.6732.9139.8048.1258.1870.34
Capital Expenditure -1.06-0.65-0.41-0.15-0.10-1.06-1.28-1.55-1.87-2.26
Free Cash Flow 5.4613.4217.6319.3045.5631.8638.5246.5756.3168.08
WACC
PV LFCF 20.2022.6425.3728.4331.86
SUM PV LFCF 187.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.89
Free cash flow (t + 1) 69.45
Terminal Value 1,179.04
Present Value of Terminal Value 806.53

Intrinsic Value

Enterprise Value 994.36
Net Debt 42.22
Equity Value 952.14
Shares Outstanding 13.60
Equity Value Per Share 70.03