Discounted Cash Flow (DCF) Analysis Levered

Destination XL Group, Inc. (DXLG)

$4.18

+0.18 (+4.50%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.84 | 4.18 | undervalue

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	473.76	474.04	318.95	505.02	545.84	591.91	641.88	696.06	754.82	818.53
Revenue (%)
Operating Cash Flow	15.74	15.80	-1.23	75.54	59.94	38.13	41.35	44.84	48.63	52.73
Operating Cash Flow (%)
Capital Expenditure	-12.96	-13.40	-4.24	-5.27	-9.64	-11.49	-12.46	-13.51	-14.65	-15.88
Capital Expenditure (%)
Free Cash Flow	2.78	2.40	-5.47	70.27	50.30	26.65	28.90	31.33	33.98	36.85

Weighted Average Cost Of Capital

Share price	$ 4.18
Beta	1.379
Diluted Shares Outstanding	66.89
Cost of Debt
Tax Rate	-52.78
After-tax Cost of Debt	0.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.319
Total Debt	144.24
Total Equity	279.60
Total Capital	423.84
Debt Weighting	34.03
Equity Weighting	65.97
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	473.76	474.04	318.95	505.02	545.84	591.91	641.88	696.06	754.82	818.53
Operating Cash Flow	15.74	15.80	-1.23	75.54	59.94	38.13	41.35	44.84	48.63	52.73
Capital Expenditure	-12.96	-13.40	-4.24	-5.27	-9.64	-11.49	-12.46	-13.51	-14.65	-15.88
Free Cash Flow	2.78	2.40	-5.47	70.27	50.30	26.65	28.90	31.33	33.98	36.85
WACC
PV LFCF						24.94	25.30	25.68	26.06	26.44
SUM PV LFCF										128.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.86
Free cash flow (t + 1)	37.58
Terminal Value	773.34
Present Value of Terminal Value	555

Intrinsic Value

Enterprise Value	683.43
Net Debt	92.17
Equity Value	591.26
Shares Outstanding	66.89
Equity Value Per Share	8.84