Discounted Cash Flow (DCF) Analysis Levered

Hollysys Automation Technologies Lt... (HOLI)

$16.73

-0.27 (-1.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 66.74 | 16.73 | 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 431.94540.77570.34503.33593.47648.10707.76772.91844.06921.76
Revenue (%)
Operating Cash Flow 69.81125.19100.52175.1279.28136.22148.76162.45177.41193.74
Operating Cash Flow (%)
Capital Expenditure -3.71-2.30-10.59-7.12-18.13-9.86-10.77-11.76-12.85-14.03
Capital Expenditure (%)
Free Cash Flow 66.10122.8989.93168.0161.15126.35137.99150.69164.56179.71

Weighted Average Cost Of Capital

Share price $ 16.73
Beta 0.652
Diluted Shares Outstanding 61.51
Cost of Debt
Tax Rate 18.37
After-tax Cost of Debt 2.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.769
Total Debt 22.03
Total Equity 1,029.13
Total Capital 1,051.16
Debt Weighting 2.10
Equity Weighting 97.90
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 431.94540.77570.34503.33593.47648.10707.76772.91844.06921.76
Operating Cash Flow 69.81125.19100.52175.1279.28136.22148.76162.45177.41193.74
Capital Expenditure -3.71-2.30-10.59-7.12-18.13-9.86-10.77-11.76-12.85-14.03
Free Cash Flow 66.10122.8989.93168.0161.15126.35137.99150.69164.56179.71
WACC
PV LFCF 118.45121.27124.15127.10130.12
SUM PV LFCF 621.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.67
Free cash flow (t + 1) 183.30
Terminal Value 3,925.08
Present Value of Terminal Value 2,842.08

Intrinsic Value

Enterprise Value 3,463.18
Net Debt -642.29
Equity Value 4,105.47
Shares Outstanding 61.51
Equity Value Per Share 66.74