Discounted Cash Flow (DCF) Analysis Levered

Gladstone Investment Corporation (GAINM)

$25.03

-0.01 (-0.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 2,303.74 | 25.03 | 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	49.40	65.33	99.23	8.01	48.73	109.74	247.16	556.65	1,253.66	2,823.45
Revenue (%)
Operating Cash Flow	32.48	-28.83	93.62	35.31	-29.73	108.86	245.17	552.17	1,243.58	2,800.76
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	108.86	245.17	552.17	1,243.58	2,800.76

Weighted Average Cost Of Capital

Share price	$ 25.03
Beta	1.457
Diluted Shares Outstanding	14.60
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	2.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.568
Total Debt	151.38
Total Equity	365.33
Total Capital	516.71
Debt Weighting	29.30
Equity Weighting	70.70
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	49.40	65.33	99.23	8.01	48.73	109.74	247.16	556.65	1,253.66	2,823.45
Operating Cash Flow	32.48	-28.83	93.62	35.31	-29.73	108.86	245.17	552.17	1,243.58	2,800.76
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	108.86	245.17	552.17	1,243.58	2,800.76
WACC
PV LFCF						100.49	208.92	434.34	902.98	1,877.29
SUM PV LFCF										3,524.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.33
Free cash flow (t + 1)	2,856.77
Terminal Value	45,130.68
Present Value of Terminal Value	30,250.20

Intrinsic Value

Enterprise Value	33,774.22
Net Debt	149.32
Equity Value	33,624.90
Shares Outstanding	14.60
Equity Value Per Share	2,303.74