Discounted Cash Flow (DCF) Analysis Levered

Gray Television, Inc. (GTN)

$17.13

+0.23 (+1.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 959.10 | 17.13 | 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	882.73	1,084.13	2,122	2,381	2,413	3,209.88	4,269.93	5,680.06	7,555.87	10,051.16
Revenue (%)
Operating Cash Flow	180.02	323.32	385	652	300	694.46	923.80	1,228.88	1,634.71	2,174.57
Operating Cash Flow (%)
Capital Expenditure	-34.52	-69.97	-110	-110	-207	-184.55	-245.49	-326.57	-434.41	-577.88
Capital Expenditure (%)
Free Cash Flow	145.50	253.34	275	542	93	509.91	678.31	902.31	1,200.30	1,596.69

Weighted Average Cost Of Capital

Share price	$ 17.13
Beta	1.730
Diluted Shares Outstanding	95
Cost of Debt
Tax Rate	46.43
After-tax Cost of Debt	1.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.289
Total Debt	6,827
Total Equity	1,627.35
Total Capital	8,454.35
Debt Weighting	80.75
Equity Weighting	19.25
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	882.73	1,084.13	2,122	2,381	2,413	3,209.88	4,269.93	5,680.06	7,555.87	10,051.16
Operating Cash Flow	180.02	323.32	385	652	300	694.46	923.80	1,228.88	1,634.71	2,174.57
Capital Expenditure	-34.52	-69.97	-110	-110	-207	-184.55	-245.49	-326.57	-434.41	-577.88
Free Cash Flow	145.50	253.34	275	542	93	509.91	678.31	902.31	1,200.30	1,596.69
WACC
PV LFCF						415.53	534.22	686.82	883	1,135.21
SUM PV LFCF										4,334.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.47
Free cash flow (t + 1)	1,628.62
Terminal Value	110,790.67
Present Value of Terminal Value	93,418.09

Intrinsic Value

Enterprise Value	97,752.53
Net Debt	6,638
Equity Value	91,114.53
Shares Outstanding	95
Equity Value Per Share	959.10