Discounted Cash Flow (DCF) Analysis Levered

LSI Industries Inc. (LYTS)

$15.81

+0.22 (+1.41%)

All numbers are in Millions, Currency in USD

Stock DCF: 15.31 | 15.81 | 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	328.85	305.56	315.61	455.12	496.98	558.61	627.89	705.76	793.28	891.67
Revenue (%)
Operating Cash Flow	11.49	29.71	28.01	-3.86	29.76	30.42	34.20	38.44	43.21	48.56
Operating Cash Flow (%)
Capital Expenditure	-2.62	-2.74	-2.23	-2.12	-3.56	-4	-4.50	-5.06	-5.68	-6.39
Capital Expenditure (%)
Free Cash Flow	8.87	26.97	25.78	-5.99	26.20	26.42	29.70	33.38	37.52	42.17

Weighted Average Cost Of Capital

Share price	$ 15.81
Beta	1.062
Diluted Shares Outstanding	29.68
Cost of Debt
Tax Rate	22.70
After-tax Cost of Debt	8.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.642
Total Debt	35.20
Total Equity	469.24
Total Capital	504.44
Debt Weighting	6.98
Equity Weighting	93.02
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	328.85	305.56	315.61	455.12	496.98	558.61	627.89	705.76	793.28	891.67
Operating Cash Flow	11.49	29.71	28.01	-3.86	29.76	30.42	34.20	38.44	43.21	48.56
Capital Expenditure	-2.62	-2.74	-2.23	-2.12	-3.56	-4	-4.50	-5.06	-5.68	-6.39
Free Cash Flow	8.87	26.97	25.78	-5.99	26.20	26.42	29.70	33.38	37.52	42.17
WACC
PV LFCF						24.12	24.76	25.40	26.07	26.75
SUM PV LFCF										127.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.53
Free cash flow (t + 1)	43.02
Terminal Value	571.29
Present Value of Terminal Value	362.40

Intrinsic Value

Enterprise Value	489.51
Net Debt	35.20
Equity Value	454.31
Shares Outstanding	29.68
Equity Value Per Share	15.31