Discounted Cash Flow (DCF) Analysis Levered

Gannett Co., Inc. (GCI)

$1.93

+0.08 (+4.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.10 | 1.93 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,526.02	1,867.91	3,405.67	3,208.08	2,945.30	3,613.42	4,433.08	5,438.68	6,672.39	8,185.96
Revenue (%)
Operating Cash Flow	109.56	25.54	57.77	127.45	40.78	112.74	138.31	169.69	208.18	255.40
Operating Cash Flow (%)
Capital Expenditure	-11.64	-13.98	-36.97	-39.56	-45.38	-38.81	-47.62	-58.42	-71.67	-87.92
Capital Expenditure (%)
Free Cash Flow	97.92	11.56	20.80	87.89	-4.60	73.93	90.70	111.27	136.51	167.48

Weighted Average Cost Of Capital

Share price	$ 1.93
Beta	2.461
Diluted Shares Outstanding	136.90
Cost of Debt
Tax Rate	-1.75
After-tax Cost of Debt	7.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.772
Total Debt	1,380.88
Total Equity	264.22
Total Capital	1,645.11
Debt Weighting	83.94
Equity Weighting	16.06
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,526.02	1,867.91	3,405.67	3,208.08	2,945.30	3,613.42	4,433.08	5,438.68	6,672.39	8,185.96
Operating Cash Flow	109.56	25.54	57.77	127.45	40.78	112.74	138.31	169.69	208.18	255.40
Capital Expenditure	-11.64	-13.98	-36.97	-39.56	-45.38	-38.81	-47.62	-58.42	-71.67	-87.92
Free Cash Flow	97.92	11.56	20.80	87.89	-4.60	73.93	90.70	111.27	136.51	167.48
WACC
PV LFCF						67.75	76.17	85.64	96.28	108.25
SUM PV LFCF										434.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.12
Free cash flow (t + 1)	170.83
Terminal Value	2,399.25
Present Value of Terminal Value	1,550.79

Intrinsic Value

Enterprise Value	1,984.89
Net Debt	1,286.63
Equity Value	698.26
Shares Outstanding	136.90
Equity Value Per Share	5.10