Discounted Cash Flow (DCF) Analysis Levered

GAMCO Investors, Inc. (GBL)

$14.78

-1.32 (-8.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 36.95 | 14.78 | 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 360.52341.45312.37259.73301.13290.04279.37269.09259.19249.65
Revenue (%)
Operating Cash Flow 126.69117.8889.9940.7396.1384.7481.6278.6275.7272.94
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----84.7481.6278.6275.7272.94

Weighted Average Cost Of Capital

Share price $ 14.78
Beta 1.339
Diluted Shares Outstanding 26.81
Cost of Debt
Tax Rate 29.64
After-tax Cost of Debt 3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.647
Total Debt 57.79
Total Equity 396.24
Total Capital 454.03
Debt Weighting 12.73
Equity Weighting 87.27
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 360.52341.45312.37259.73301.13290.04279.37269.09259.19249.65
Operating Cash Flow 126.69117.8889.9940.7396.1384.7481.6278.6275.7272.94
Capital Expenditure ----------
Free Cash Flow -----84.7481.6278.6275.7272.94
WACC
PV LFCF 77.2267.7859.4952.2145.83
SUM PV LFCF 302.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.74
Free cash flow (t + 1) 74.40
Terminal Value 961.19
Present Value of Terminal Value 603.93

Intrinsic Value

Enterprise Value 906.45
Net Debt -84.24
Equity Value 990.69
Shares Outstanding 26.81
Equity Value Per Share 36.95