Discounted Cash Flow (DCF) Analysis Levered

JAKKS Pacific, Inc. (JAKK)

$20.65

-0.45 (-2.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 28.66 | 20.65 | 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	567.81	598.65	515.87	621.12	796.19	876.19	964.23	1,061.11	1,167.73	1,285.06
Revenue (%)
Operating Cash Flow	-0.62	21.83	43.57	24.81	31.80	34.99	38.51	42.38	46.64	51.32
Operating Cash Flow (%)
Capital Expenditure	-11.77	-9.42	-8.27	-10.87	-13.93	-15.33	-16.87	-18.56	-20.43	-22.48
Capital Expenditure (%)
Free Cash Flow	-12.39	12.41	35.30	13.94	17.87	19.66	21.64	23.81	26.21	28.84

Weighted Average Cost Of Capital

Share price	$ 20.65
Beta	2.182
Diluted Shares Outstanding	7.50
Cost of Debt
Tax Rate	-82.30
After-tax Cost of Debt	12.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.934
Total Debt	87.76
Total Equity	154.83
Total Capital	242.59
Debt Weighting	36.18
Equity Weighting	63.82
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	567.81	598.65	515.87	621.12	796.19	876.19	964.23	1,061.11	1,167.73	1,285.06
Operating Cash Flow	-0.62	21.83	43.57	24.81	31.80	34.99	38.51	42.38	46.64	51.32
Capital Expenditure	-11.77	-9.42	-8.27	-10.87	-13.93	-15.33	-16.87	-18.56	-20.43	-22.48
Free Cash Flow	-12.39	12.41	35.30	13.94	17.87	19.66	21.64	23.81	26.21	28.84
WACC
PV LFCF						13.45	13.04	12.64	12.26	11.89
SUM PV LFCF										81.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	13.50
Free cash flow (t + 1)	29.42
Terminal Value	255.81
Present Value of Terminal Value	135.81

Intrinsic Value

Enterprise Value	217.33
Net Debt	2.46
Equity Value	214.86
Shares Outstanding	7.50
Equity Value Per Share	28.66