Discounted Cash Flow (DCF) Analysis Levered

LSI Industries Inc. (LYTS)

$11.95

-0.12 (-0.99%)

All numbers are in Millions, Currency in USD

Stock DCF: 14.53 | 11.95 | 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	342.02	328.85	305.56	315.61	455.12	496.72	542.11	591.66	645.74	704.75
Revenue (%)
Operating Cash Flow	11.50	11.49	29.71	28.01	-3.86	24.44	26.68	29.12	31.78	34.68
Operating Cash Flow (%)
Capital Expenditure	-3.41	-2.62	-2.74	-2.23	-2.12	-3.84	-4.19	-4.57	-4.99	-5.44
Capital Expenditure (%)
Free Cash Flow	8.09	8.87	26.97	25.78	-5.99	20.61	22.49	24.55	26.79	29.24

Weighted Average Cost Of Capital

Share price	$ 11.95
Beta	1.075
Diluted Shares Outstanding	27.99
Cost of Debt
Tax Rate	21.24
After-tax Cost of Debt	1.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.817
Total Debt	90.63
Total Equity	334.52
Total Capital	425.15
Debt Weighting	21.32
Equity Weighting	78.68
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	342.02	328.85	305.56	315.61	455.12	496.72	542.11	591.66	645.74	704.75
Operating Cash Flow	11.50	11.49	29.71	28.01	-3.86	24.44	26.68	29.12	31.78	34.68
Capital Expenditure	-3.41	-2.62	-2.74	-2.23	-2.12	-3.84	-4.19	-4.57	-4.99	-5.44
Free Cash Flow	8.09	8.87	26.97	25.78	-5.99	20.61	22.49	24.55	26.79	29.24
WACC
PV LFCF						19.21	19.54	19.87	20.21	20.56
SUM PV LFCF										99.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.30
Free cash flow (t + 1)	29.82
Terminal Value	562.71
Present Value of Terminal Value	395.63

Intrinsic Value

Enterprise Value	495.01
Net Debt	88.17
Equity Value	406.84
Shares Outstanding	27.99
Equity Value Per Share	14.53