Discounted Cash Flow (DCF) Analysis Levered

Ethan Allen Interiors Inc. (ETH)

$26.3

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 33.51 | 26.3 | 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	763.38	766.78	746.68	589.84	685.17	673.15	661.33	649.73	638.33	627.12
Revenue (%)
Operating Cash Flow	78.63	42.50	55.25	52.70	129.91	68.84	67.64	66.45	65.28	64.14
Operating Cash Flow (%)
Capital Expenditure	-17.65	-18.77	-9.12	-15.71	-12.03	-14	-13.76	-13.51	-13.28	-13.04
Capital Expenditure (%)
Free Cash Flow	60.99	23.72	46.13	36.99	117.88	54.84	53.88	52.94	52.01	51.09

Weighted Average Cost Of Capital

Share price	$ 26.3
Beta	1.132
Diluted Shares Outstanding	25.05
Cost of Debt
Tax Rate	21.47
After-tax Cost of Debt	0.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.982
Total Debt	126.09
Total Equity	658.89
Total Capital	784.99
Debt Weighting	16.06
Equity Weighting	83.94
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	763.38	766.78	746.68	589.84	685.17	673.15	661.33	649.73	638.33	627.12
Operating Cash Flow	78.63	42.50	55.25	52.70	129.91	68.84	67.64	66.45	65.28	64.14
Capital Expenditure	-17.65	-18.77	-9.12	-15.71	-12.03	-14	-13.76	-13.51	-13.28	-13.04
Free Cash Flow	60.99	23.72	46.13	36.99	117.88	54.84	53.88	52.94	52.01	51.09
WACC
PV LFCF						44.04	40.21	36.72	33.53	30.62
SUM PV LFCF										214.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.59
Free cash flow (t + 1)	52.12
Terminal Value	932.30
Present Value of Terminal Value	646.69

Intrinsic Value

Enterprise Value	860.96
Net Debt	21.50
Equity Value	839.47
Shares Outstanding	25.05
Equity Value Per Share	33.51