Discounted Cash Flow (DCF) Analysis Levered

Gray Television, Inc. (GTN)

$7.63

-0.36 (-4.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,119.06 | 7.63 | 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	1,084.13	2,122	2,381	2,413	3,676	5,161.32	7,246.80	10,174.93	14,286.20	20,058.67
Revenue (%)
Operating Cash Flow	323.32	385	652	300	829	1,138.93	1,599.13	2,245.27	3,152.50	4,426.29
Operating Cash Flow (%)
Capital Expenditure	-69.97	-110	-110	-207	-436	-378.81	-531.88	-746.79	-1,048.53	-1,472.20
Capital Expenditure (%)
Free Cash Flow	253.34	275	542	93	393	760.12	1,067.25	1,498.49	2,103.96	2,954.09

Weighted Average Cost Of Capital

Share price	$ 7.63
Beta	1.550
Diluted Shares Outstanding	95
Cost of Debt
Tax Rate	34.36
After-tax Cost of Debt	3.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.061
Total Debt	6,518
Total Equity	724.85
Total Capital	7,242.85
Debt Weighting	89.99
Equity Weighting	10.01
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	1,084.13	2,122	2,381	2,413	3,676	5,161.32	7,246.80	10,174.93	14,286.20	20,058.67
Operating Cash Flow	323.32	385	652	300	829	1,138.93	1,599.13	2,245.27	3,152.50	4,426.29
Capital Expenditure	-69.97	-110	-110	-207	-436	-378.81	-531.88	-746.79	-1,048.53	-1,472.20
Free Cash Flow	253.34	275	542	93	393	760.12	1,067.25	1,498.49	2,103.96	2,954.09
WACC
PV LFCF						669.74	901.50	1,213.45	1,633.36	2,198.58
SUM PV LFCF										7,199.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.31
Free cash flow (t + 1)	3,013.17
Terminal Value	130,440.27
Present Value of Terminal Value	105,628.70

Intrinsic Value

Enterprise Value	112,827.97
Net Debt	6,517
Equity Value	106,310.97
Shares Outstanding	95
Equity Value Per Share	1,119.06