Discounted Cash Flow (DCF) Analysis Levered

Highland Funds I - Highland Income ... (HFRO)

$10.15

+0.10 (+1.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 378.22 | 10.15 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 70.3295.4241.92146.48258.32455.55803.381,416.772,498.51
Revenue (%)
Operating Cash Flow -631.1237.39407.23207.54164.61290.29511.93902.811,592.12
Operating Cash Flow (%)
Capital Expenditure ---------
Capital Expenditure (%)
Free Cash Flow ----164.61290.29511.93902.811,592.12

Weighted Average Cost Of Capital

Share price $ 10.15
Beta 0.628
Diluted Shares Outstanding 71.74
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.790
Total Debt -
Total Equity 728.12
Total Capital 728.12
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 70.3295.4241.92146.48258.32455.55803.381,416.772,498.51
Operating Cash Flow -631.1237.39407.23207.54164.61290.29511.93902.811,592.12
Capital Expenditure ---------
Free Cash Flow ----164.61290.29511.93902.811,592.12
WACC
PV LFCF 164.61271.83448.90741.321,224.20
SUM PV LFCF 2,669.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.79
Free cash flow (t + 1) 1,623.96
Terminal Value 33,903.11
Present Value of Terminal Value 24,411.06

Intrinsic Value

Enterprise Value 27,080.65
Net Debt -51.43
Equity Value 27,132.09
Shares Outstanding 71.74
Equity Value Per Share 378.22