Discounted Cash Flow (DCF) Analysis Levered

J. Alexander's Holdings, Inc. (JAX)

- (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.59 | | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	219.58	233.26	242.26	247.27	183.37	177.10	171.04	165.19	159.54	154.08
Revenue (%)
Operating Cash Flow	16.42	21.26	21.68	17.25	6.06	12.69	12.26	11.84	11.43	11.04
Operating Cash Flow (%)
Capital Expenditure	-20.78	-13.31	-18.11	-11.94	-7.38	-11.16	-10.77	-10.41	-10.05	-9.71
Capital Expenditure (%)
Free Cash Flow	-4.36	7.95	3.57	5.32	-1.32	1.53	1.48	1.43	1.38	1.33

Weighted Average Cost Of Capital

Share price	$ -
Beta	1.540
Diluted Shares Outstanding	14.72
Cost of Debt
Tax Rate	26.85
After-tax Cost of Debt	3.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.427
Total Debt	19.84
Total Equity	-
Total Capital	19.84
Debt Weighting	100.00
Equity Weighting	0.00
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	219.58	233.26	242.26	247.27	183.37	177.10	171.04	165.19	159.54	154.08
Operating Cash Flow	16.42	21.26	21.68	17.25	6.06	12.69	12.26	11.84	11.43	11.04
Capital Expenditure	-20.78	-13.31	-18.11	-11.94	-7.38	-11.16	-10.77	-10.41	-10.05	-9.71
Free Cash Flow	-4.36	7.95	3.57	5.32	-1.32	1.53	1.48	1.43	1.38	1.33
WACC
PV LFCF						1.49	1.39	1.31	1.22	1.15
SUM PV LFCF										6.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.04
Free cash flow (t + 1)	1.36
Terminal Value	130.77
Present Value of Terminal Value	112.59

Intrinsic Value

Enterprise Value	119.15
Net Debt	7.48
Equity Value	111.67
Shares Outstanding	14.72
Equity Value Per Share	7.59