Discounted Cash Flow (DCF) Analysis Levered

Hennessy Advisors, Inc. (HNNA)

$9.05

+0.06 (+0.67%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.85 | 9.05 | 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 52.9554.5942.7233.3932.7629.2926.1923.4120.9318.71
Revenue (%)
Operating Cash Flow 19.1921.5314.3910.6210.3910.139.058.107.246.47
Operating Cash Flow (%)
Capital Expenditure -0.18-0.36-0.20-0.17-0.25-0.16-0.14-0.13-0.11-0.10
Capital Expenditure (%)
Free Cash Flow 19.0221.1714.1910.4510.149.978.917.977.126.37

Weighted Average Cost Of Capital

Share price $ 9.05
Beta 0.836
Diluted Shares Outstanding 7.41
Cost of Debt
Tax Rate 27.38
After-tax Cost of Debt 3.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.454
Total Debt 1
Total Equity 67.05
Total Capital 68.06
Debt Weighting 1.48
Equity Weighting 98.52
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 52.9554.5942.7233.3932.7629.2926.1923.4120.9318.71
Operating Cash Flow 19.1921.5314.3910.6210.3910.139.058.107.246.47
Capital Expenditure -0.18-0.36-0.20-0.17-0.25-0.16-0.14-0.13-0.11-0.10
Free Cash Flow 19.0221.1714.1910.4510.149.978.917.977.126.37
WACC
PV LFCF 9.287.736.435.354.46
SUM PV LFCF 33.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.40
Free cash flow (t + 1) 6.50
Terminal Value 120.29
Present Value of Terminal Value 84.18

Intrinsic Value

Enterprise Value 117.42
Net Debt -14.83
Equity Value 132.25
Shares Outstanding 7.41
Equity Value Per Share 17.85