Discounted Cash Flow (DCF) Analysis Levered

Lifeway Foods, Inc. (LWAY)

$6.575

+0.07 (+1.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 1.89 | 6.575 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 118.89103.3593.66102.03119.07120.01120.97121.93122.90123.88
Revenue (%)
Operating Cash Flow 3.812.423.816.395.564.934.975.015.055.09
Operating Cash Flow (%)
Capital Expenditure -5.34-2.82-1.18-1.90-1.92-2.87-2.89-2.92-2.94-2.96
Capital Expenditure (%)
Free Cash Flow -1.53-0.412.634.493.642.062.082.092.112.13

Weighted Average Cost Of Capital

Share price $ 6.575
Beta 1.529
Diluted Shares Outstanding 15.77
Cost of Debt
Tax Rate 41.04
After-tax Cost of Debt 2.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.687
Total Debt 2.86
Total Equity 103.71
Total Capital 106.57
Debt Weighting 2.69
Equity Weighting 97.31
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 118.89103.3593.66102.03119.07120.01120.97121.93122.90123.88
Operating Cash Flow 3.812.423.816.395.564.934.975.015.055.09
Capital Expenditure -5.34-2.82-1.18-1.90-1.92-2.87-2.89-2.92-2.94-2.96
Free Cash Flow -1.53-0.412.634.493.642.062.082.092.112.13
WACC
PV LFCF 1.871.701.551.421.29
SUM PV LFCF 7.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.46
Free cash flow (t + 1) 2.17
Terminal Value 25.65
Present Value of Terminal Value 15.60

Intrinsic Value

Enterprise Value 23.43
Net Debt -6.37
Equity Value 29.80
Shares Outstanding 15.77
Equity Value Per Share 1.89