Discounted Cash Flow (DCF) Analysis Levered

Mayville Engineering Company, Inc. (MEC)

$12.86

-0.13 (-1.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 10.53 | 12.86 | overvalue

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	354.53	519.70	357.61	454.83	539.39	621.89	717.01	826.68	953.12	1,098.90
Revenue (%)
Operating Cash Flow	36.71	33.40	36.52	14.46	52.43	49.62	57.21	65.96	76.05	87.68
Operating Cash Flow (%)
Capital Expenditure	-17.88	-25.80	-7.79	-39.31	-58.61	-39.42	-45.45	-52.40	-60.42	-69.66
Capital Expenditure (%)
Free Cash Flow	18.84	7.61	28.73	-24.85	-6.18	10.20	11.76	13.56	15.63	18.02

Weighted Average Cost Of Capital

Share price	$ 12.86
Beta	0.828
Diluted Shares Outstanding	20.68
Cost of Debt
Tax Rate	16.37
After-tax Cost of Debt	3.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.215
Total Debt	108.98
Total Equity	265.98
Total Capital	374.96
Debt Weighting	29.07
Equity Weighting	70.93
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	354.53	519.70	357.61	454.83	539.39	621.89	717.01	826.68	953.12	1,098.90
Operating Cash Flow	36.71	33.40	36.52	14.46	52.43	49.62	57.21	65.96	76.05	87.68
Capital Expenditure	-17.88	-25.80	-7.79	-39.31	-58.61	-39.42	-45.45	-52.40	-60.42	-69.66
Free Cash Flow	18.84	7.61	28.73	-24.85	-6.18	10.20	11.76	13.56	15.63	18.02
WACC
PV LFCF						9.54	10.30	11.11	11.98	12.93
SUM PV LFCF										55.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.87
Free cash flow (t + 1)	18.38
Terminal Value	377.44
Present Value of Terminal Value	270.75

Intrinsic Value

Enterprise Value	326.60
Net Debt	108.86
Equity Value	217.75
Shares Outstanding	20.68
Equity Value Per Share	10.53