Discounted Cash Flow (DCF) Analysis Levered

HireQuest, Inc. (HQI)

$24.2

+1.18 (+5.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 14.18 | 24.2 | overvalue

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	97.39	15.88	13.81	22.76	30.95	31.27	31.59	31.91	32.24	32.57
Revenue (%)
Operating Cash Flow	2.62	4.96	10.88	17.38	16.88	15.23	15.39	15.55	15.71	15.87
Operating Cash Flow (%)
Capital Expenditure	-0.16	-0.51	-1.76	-1.98	-0.10	-1.57	-1.59	-1.60	-1.62	-1.64
Capital Expenditure (%)
Free Cash Flow	2.46	4.45	9.12	15.41	16.78	13.66	13.80	13.94	14.09	14.23

Weighted Average Cost Of Capital

Share price	$ 24.2
Beta	1.063
Diluted Shares Outstanding	13.72
Cost of Debt
Tax Rate	13.66
After-tax Cost of Debt	2.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.709
Total Debt	12.54
Total Equity	332.05
Total Capital	344.59
Debt Weighting	3.64
Equity Weighting	96.36
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	97.39	15.88	13.81	22.76	30.95	31.27	31.59	31.91	32.24	32.57
Operating Cash Flow	2.62	4.96	10.88	17.38	16.88	15.23	15.39	15.55	15.71	15.87
Capital Expenditure	-0.16	-0.51	-1.76	-1.98	-0.10	-1.57	-1.59	-1.60	-1.62	-1.64
Free Cash Flow	2.46	4.45	9.12	15.41	16.78	13.66	13.80	13.94	14.09	14.23
WACC
PV LFCF						11.61	10.81	10.07	9.38	8.73
SUM PV LFCF										54.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.48
Free cash flow (t + 1)	14.51
Terminal Value	224
Present Value of Terminal Value	149.10

Intrinsic Value

Enterprise Value	203.99
Net Debt	9.49
Equity Value	194.50
Shares Outstanding	13.72
Equity Value Per Share	14.18