Discounted Cash Flow (DCF) Analysis Levered

Envela Corporation (ELA)

$4.99

-0.07 (-1.38%)

All numbers are in Millions, Currency in USD

Stock DCF: 11.49 | 4.99 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	54.06	82.02	113.92	140.97	182.69	248.44	337.85	459.44	624.79	849.66
Revenue (%)
Operating Cash Flow	0.38	-0.54	6.90	2.81	10.02	6.74	9.16	12.46	16.95	23.04
Operating Cash Flow (%)
Capital Expenditure	-0.19	-0.16	-5.86	-3.14	-0.27	-4.01	-5.46	-7.42	-10.09	-13.72
Capital Expenditure (%)
Free Cash Flow	0.18	-0.71	1.03	-0.33	9.75	2.73	3.71	5.04	6.85	9.32

Weighted Average Cost Of Capital

Share price	$ 4.99
Beta	0.094
Diluted Shares Outstanding	26.94
Cost of Debt
Tax Rate	-9.11
After-tax Cost of Debt	2.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.002
Total Debt	22.03
Total Equity	134.43
Total Capital	156.46
Debt Weighting	14.08
Equity Weighting	85.92
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	54.06	82.02	113.92	140.97	182.69	248.44	337.85	459.44	624.79	849.66
Operating Cash Flow	0.38	-0.54	6.90	2.81	10.02	6.74	9.16	12.46	16.95	23.04
Capital Expenditure	-0.19	-0.16	-5.86	-3.14	-0.27	-4.01	-5.46	-7.42	-10.09	-13.72
Free Cash Flow	0.18	-0.71	1.03	-0.33	9.75	2.73	3.71	5.04	6.85	9.32
WACC
PV LFCF						2.08	2.70	3.51	4.57	5.94
SUM PV LFCF										23.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.61
Free cash flow (t + 1)	9.51
Terminal Value	364.27
Present Value of Terminal Value	290.78

Intrinsic Value

Enterprise Value	314.33
Net Debt	4.86
Equity Value	309.47
Shares Outstanding	26.94
Equity Value Per Share	11.49