Discounted Cash Flow (DCF) Analysis Levered

Mayville Engineering Company, Inc. (MEC)

$7.65

+0.30 (+4.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.90 | 7.65 | undervalue

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 313.33354.53519.70357.61454.83518.20590.40672.67766.40873.18
Revenue (%)
Operating Cash Flow 30.8036.7133.4036.5214.4641.4647.2453.8261.3269.86
Operating Cash Flow (%)
Capital Expenditure -11.26-17.88-25.80-7.79-39.31-25.31-28.84-32.86-37.43-42.65
Capital Expenditure (%)
Free Cash Flow 19.5418.847.6128.73-24.8516.1518.4020.9623.8927.21

Weighted Average Cost Of Capital

Share price $ 7.65
Beta 0.528
Diluted Shares Outstanding 20.83
Cost of Debt
Tax Rate 20.68
After-tax Cost of Debt 2.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.382
Total Debt 68.82
Total Equity 159.36
Total Capital 228.17
Debt Weighting 30.16
Equity Weighting 69.84
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 313.33354.53519.70357.61454.83518.20590.40672.67766.40873.18
Operating Cash Flow 30.8036.7133.4036.5214.4641.4647.2453.8261.3269.86
Capital Expenditure -11.26-17.88-25.80-7.79-39.31-25.31-28.84-32.86-37.43-42.65
Free Cash Flow 19.5418.847.6128.73-24.8516.1518.4020.9623.8927.21
WACC
PV LFCF 12.4413.5714.8016.1417.61
SUM PV LFCF 92.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.45
Free cash flow (t + 1) 27.76
Terminal Value 1,132.96
Present Value of Terminal Value 911.33

Intrinsic Value

Enterprise Value 1,004.01
Net Debt 68.70
Equity Value 935.31
Shares Outstanding 20.83
Equity Value Per Share 44.90