Discounted Cash Flow (DCF) Analysis Levered

The Eastern Company (EML)

$19.63

+1.48 (+8.15%)
All numbers are in Millions, Currency in USD
Stock DCF: 152.65 | 19.63 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 204.24234.28251.74279.64310.62345.05383.28425.75472.93525.33583.55
Revenue (%)
Operating Cash Flow 11.1812.8822.9618.7320.8023.1125.6728.5131.6735.1839.08
Operating Cash Flow (%)
Capital Expenditure -2.76-5.41-5.44-5.43-6.03-6.70-7.44-8.26-9.18-10.20-11.33
Capital Expenditure (%)
Free Cash Flow 8.427.4717.5213.3014.7716.4118.2320.2522.4924.9827.75

Weighted Average Cost Of Capital

Share price $ 19.63
Beta 0.862
Diluted Shares Outstanding 6.26
Cost of Debt
Tax Rate 50.98
After-tax Cost of Debt -1.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.837
Total Debt 73.98
Total Equity 122.97
Total Capital 196.95
Debt Weighting 37.56
Equity Weighting 62.44
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 204.24234.28251.74279.64310.62345.05383.28425.75472.93525.33583.55
Operating Cash Flow 11.1812.8822.9618.7320.8023.1125.6728.5131.6735.1839.08
Capital Expenditure -2.76-5.41-5.44-5.43-6.03-6.70-7.44-8.26-9.18-10.20-11.33
Free Cash Flow 8.427.4717.5213.3014.7716.4118.2320.2522.4924.9827.75
WACC
PV LFCF 13.8914.7715.7116.7017.7618.8920.0921.36
SUM PV LFCF 99.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.46
Free cash flow (t + 1) 28.31
Terminal Value 1,150.63
Present Value of Terminal Value 925.09

Intrinsic Value

Enterprise Value 1,024.12
Net Debt 67.81
Equity Value 956.31
Shares Outstanding 6.26
Equity Value Per Share 152.65