Discounted Cash Flow (DCF) Analysis Levered

Spark Networks SE (LOV)

$ 3.1

-0.20 (-6.06%)

Stock DCF: 19.49 | 3.1 | 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	77.29	102.74	119.60	167.06	233.04	307.91	406.83	537.54	710.24	938.42
Revenue (%)
Operating Cash Flow	7.19	-1.42	9.67	9.67	18.95	18.44	24.36	32.19	42.53	56.19
Operating Cash Flow (%)
Capital Expenditure	-2.09	-5.01	-4.04	-4.44	-2.73	-9.11	-12.04	-15.90	-21.01	-27.76
Capital Expenditure (%)
Free Cash Flow	5.10	-6.42	5.63	5.23	16.22	9.33	12.32	16.28	21.52	28.43

Weighted Average Cost Of Capital

Share price	$ 3.1
Beta	1.662
Diluted Shares Outstanding	2.61
Cost of Debt
Tax Rate	-11.99
After-tax Cost of Debt	33.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.328
Total Debt	40.01
Total Equity	8.08
Total Capital	48.08
Debt Weighting	83.20
Equity Weighting	16.80
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	77.29	102.74	119.60	167.06	233.04	307.91	406.83	537.54	710.24	938.42
Operating Cash Flow	7.19	-1.42	9.67	9.67	18.95	18.44	24.36	32.19	42.53	56.19
Capital Expenditure	-2.09	-5.01	-4.04	-4.44	-2.73	-9.11	-12.04	-15.90	-21.01	-27.76
Free Cash Flow	5.10	-6.42	5.63	5.23	16.22	9.33	12.32	16.28	21.52	28.43
WACC
PV LFCF						7.21	7.37	7.53	7.69	7.85
SUM PV LFCF										37.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	29.34
Free cash flow (t + 1)	29.85
Terminal Value	122.64
Present Value of Terminal Value	33.88

Intrinsic Value

Enterprise Value	71.53
Net Debt	20.74
Equity Value	50.79
Shares Outstanding	2.61
Equity Value Per Share	19.49