Discounted Cash Flow (DCF) Analysis Levered

Gilat Satellite Networks Ltd. (GILT)

$6.35

-0.04 (-0.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 10.10 | 6.35 | 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	266.39	263.49	165.89	218.82	239.84	241.87	243.92	245.98	248.06	250.16
Revenue (%)
Operating Cash Flow	32.02	34.78	43.16	18.90	10.81	31.15	31.41	31.67	31.94	32.21
Operating Cash Flow (%)
Capital Expenditure	-10.76	-7.98	-4.72	-8.93	-12.79	-9.35	-9.43	-9.51	-9.59	-9.67
Capital Expenditure (%)
Free Cash Flow	21.26	26.80	38.44	9.97	-1.98	21.80	21.98	22.17	22.35	22.54

Weighted Average Cost Of Capital

Share price	$ 6.35
Beta	0.602
Diluted Shares Outstanding	56.59
Cost of Debt
Tax Rate	183.08
After-tax Cost of Debt	-61.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.997
Total Debt	3.83
Total Equity	359.36
Total Capital	363.19
Debt Weighting	1.05
Equity Weighting	98.95
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	266.39	263.49	165.89	218.82	239.84	241.87	243.92	245.98	248.06	250.16
Operating Cash Flow	32.02	34.78	43.16	18.90	10.81	31.15	31.41	31.67	31.94	32.21
Capital Expenditure	-10.76	-7.98	-4.72	-8.93	-12.79	-9.35	-9.43	-9.51	-9.59	-9.67
Free Cash Flow	21.26	26.80	38.44	9.97	-1.98	21.80	21.98	22.17	22.35	22.54
WACC
PV LFCF						20.51	19.46	18.46	17.52	16.62
SUM PV LFCF										92.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.28
Free cash flow (t + 1)	22.99
Terminal Value	537.24
Present Value of Terminal Value	396.20

Intrinsic Value

Enterprise Value	488.78
Net Debt	-82.76
Equity Value	571.54
Shares Outstanding	56.59
Equity Value Per Share	10.10