Discounted Cash Flow (DCF) Analysis Levered

Kratos Defense & Security Solutions... (KTOS)

$17

-0.10 (-0.58%)
All numbers are in Millions, Currency in USD
Stock DCF: -7.98 | 17 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 717.50747.70811.50898.301,037.101,137.931,248.561,369.961,503.151,649.29
Revenue (%)
Operating Cash Flow 3046.6030.80-25.7065.2040.1344.0448.3253.0258.17
Operating Cash Flow (%)
Capital Expenditure -26.30-35.90-46.50-45.40-52.40-55.31-60.69-66.59-73.06-80.17
Capital Expenditure (%)
Free Cash Flow 3.7010.70-15.70-71.1012.80-15.18-16.65-18.27-20.05-22

Weighted Average Cost Of Capital

Share price $ 17
Beta 0.800
Diluted Shares Outstanding 130.40
Cost of Debt
Tax Rate 180.18
After-tax Cost of Debt -5.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.132
Total Debt 321.40
Total Equity 2,216.80
Total Capital 2,538.20
Debt Weighting 12.66
Equity Weighting 87.34
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 717.50747.70811.50898.301,037.101,137.931,248.561,369.961,503.151,649.29
Operating Cash Flow 3046.6030.80-25.7065.2040.1344.0448.3253.0258.17
Capital Expenditure -26.30-35.90-46.50-45.40-52.40-55.31-60.69-66.59-73.06-80.17
Free Cash Flow 3.7010.70-15.70-71.1012.80-15.18-16.65-18.27-20.05-22
WACC
PV LFCF -14.27-14.72-15.19-15.67-16.17
SUM PV LFCF -76.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.35
Free cash flow (t + 1) -22.88
Terminal Value -973.49
Present Value of Terminal Value -715.56

Intrinsic Value

Enterprise Value -791.58
Net Debt 248.60
Equity Value -1,040.18
Shares Outstanding 130.40
Equity Value Per Share -7.98