Discounted Cash Flow (DCF) Analysis Levered

Mesa Laboratories, Inc. (MLAB)

$196.14

+5.50 (+2.89%)

All numbers are in Millions, Currency in USD

Stock DCF: 64.28 | 196.14 | 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	96.18	103.13	117.69	133.94	58.88	55.80	52.89	50.13	47.51	45.03
Revenue (%)
Operating Cash Flow	24.81	30.55	26.56	37.07	39.22	19.23	18.22	17.27	16.37	15.52
Operating Cash Flow (%)
Capital Expenditure	-2.80	-1.26	-1.50	-1.99	-4.43	-1.61	-1.53	-1.45	-1.37	-1.30
Capital Expenditure (%)
Free Cash Flow	22.01	29.29	25.06	35.08	34.79	17.62	16.70	15.83	15	14.22

Weighted Average Cost Of Capital

Share price	$ 196.14
Beta	0.525
Diluted Shares Outstanding	5.33
Cost of Debt
Tax Rate	-3,778.26
After-tax Cost of Debt	2.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.325
Total Debt	169.37
Total Equity	1,046.41
Total Capital	1,215.77
Debt Weighting	13.93
Equity Weighting	86.07
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	96.18	103.13	117.69	133.94	58.88	55.80	52.89	50.13	47.51	45.03
Operating Cash Flow	24.81	30.55	26.56	37.07	39.22	19.23	18.22	17.27	16.37	15.52
Capital Expenditure	-2.80	-1.26	-1.50	-1.99	-4.43	-1.61	-1.53	-1.45	-1.37	-1.30
Free Cash Flow	22.01	29.29	25.06	35.08	34.79	17.62	16.70	15.83	15	14.22
WACC
PV LFCF						16.80	15.18	13.71	12.39	11.19
SUM PV LFCF										69.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.90
Free cash flow (t + 1)	14.50
Terminal Value	500.05
Present Value of Terminal Value	393.67

Intrinsic Value

Enterprise Value	462.93
Net Debt	120.02
Equity Value	342.91
Shares Outstanding	5.33
Equity Value Per Share	64.28