Discounted Cash Flow (DCF) Analysis Levered

FONAR Corporation (FONR)

$17.295

+0.14 (+0.79%)

All numbers are in Millions, Currency in USD

Stock DCF: 60.30 | 17.295 | undervalue

Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	85.69	89.93	97.59	104.16	111.18	118.66	126.66	135.18	144.29
Revenue (%)
Operating Cash Flow	20.40	19.09	15.30	21.08	22.50	24.02	25.63	27.36	29.20
Operating Cash Flow (%)
Capital Expenditure	-7.64	-4.82	-4.63	-6.60	-7.05	-7.52	-8.03	-8.57	-9.15
Capital Expenditure (%)
Free Cash Flow	12.76	14.27	10.67	14.48	15.45	16.49	17.60	18.79	20.05

Weighted Average Cost Of Capital

Share price	$ 17.295
Beta	0.910
Diluted Shares Outstanding	6.63
Cost of Debt
Tax Rate	45.36
After-tax Cost of Debt	2.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.995
Total Debt	37.65
Total Equity	114.71
Total Capital	152.37
Debt Weighting	24.71
Equity Weighting	75.29
Wacc

Build Up Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	85.69	89.93	97.59	104.16	111.18	118.66	126.66	135.18	144.29
Operating Cash Flow	20.40	19.09	15.30	21.08	22.50	24.02	25.63	27.36	29.20
Capital Expenditure	-7.64	-4.82	-4.63	-6.60	-7.05	-7.52	-8.03	-8.57	-9.15
Free Cash Flow	12.76	14.27	10.67	14.48	15.45	16.49	17.60	18.79	20.05
WACC
PV LFCF				15.44	15.45	15.46	15.46	15.47	15.48
SUM PV LFCF									72.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.69
Free cash flow (t + 1)	20.45
Terminal Value	436.09
Present Value of Terminal Value	315.47

Intrinsic Value

Enterprise Value	387.94
Net Debt	-11.99
Equity Value	399.93
Shares Outstanding	6.63
Equity Value Per Share	60.30