Discounted Cash Flow (DCF) Analysis Levered
Mercury Systems, Inc. (MRCY)
$36.69
+0.70 (+1.95%)
All numbers are in Millions, Currency in USD
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 | 654.74 | 796.61 | 924 | 988.20 | 973.88 | 1,078.96 | 1,195.37 | 1,324.35 | 1,467.24 | 1,625.55 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 97.52 | 115.18 | 97.25 | -18.87 | -21.25 | 77.22 | 85.56 | 94.79 | 105.01 | 116.34 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -26.69 | -43.29 | -45.60 | -27.66 | -38.80 | -45.81 | -50.75 | -56.23 | -62.29 | -69.02 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 70.83 | 71.89 | 51.65 | -46.52 | -60.05 | 31.41 | 34.80 | 38.56 | 42.72 | 47.33 |
Weighted Average Cost Of Capital
Share price | $ 36.69 |
---|---|
Beta | 0.884 |
Diluted Shares Outstanding | 56.55 |
Cost of Debt | |
Tax Rate | 41.63 |
After-tax Cost of Debt | 2.54% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.802 |
Total Debt | 578.30 |
Total Equity | 2,074.97 |
Total Capital | 2,653.26 |
Debt Weighting | 21.80 |
Equity Weighting | 78.20 |
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 | 654.74 | 796.61 | 924 | 988.20 | 973.88 | 1,078.96 | 1,195.37 | 1,324.35 | 1,467.24 | 1,625.55 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 97.52 | 115.18 | 97.25 | -18.87 | -21.25 | 77.22 | 85.56 | 94.79 | 105.01 | 116.34 |
Capital Expenditure | -26.69 | -43.29 | -45.60 | -27.66 | -38.80 | -45.81 | -50.75 | -56.23 | -62.29 | -69.02 |
Free Cash Flow | 70.83 | 71.89 | 51.65 | -46.52 | -60.05 | 31.41 | 34.80 | 38.56 | 42.72 | 47.33 |
WACC | ||||||||||
PV LFCF | 29.24 | 30.15 | 31.09 | 32.06 | 33.06 | |||||
SUM PV LFCF | 155.60 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.44 |
Free cash flow (t + 1) | 48.27 |
Terminal Value | 887.39 |
Present Value of Terminal Value | 619.85 |
Intrinsic Value
Enterprise Value | 775.44 |
---|---|
Net Debt | 506.73 |
Equity Value | 268.71 |
Shares Outstanding | 56.55 |
Equity Value Per Share | 4.75 |