Discounted Cash Flow (DCF) Analysis Levered

MSG Networks Inc. (MSGN)

$14.17

-0.13 (-0.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 71.82 | 14.17 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	658.20	675.35	696.65	720.85	685.80	693.29	700.87	708.52	716.27	724.09
Revenue (%)
Operating Cash Flow	68.16	196.18	210.61	205.96	210.03	178.64	180.59	182.56	184.56	186.58
Operating Cash Flow (%)
Capital Expenditure	-3.32	-4.89	-3.72	-2.88	-2.81	-3.57	-3.61	-3.65	-3.69	-3.73
Capital Expenditure (%)
Free Cash Flow	64.83	191.29	206.89	203.08	207.22	175.07	176.98	178.92	180.87	182.85

Weighted Average Cost Of Capital

Share price	$ 14.17
Beta	1.170
Diluted Shares Outstanding	63.52
Cost of Debt
Tax Rate	28.51
After-tax Cost of Debt	2.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.369
Total Debt	1,081.01
Total Equity	900.01
Total Capital	1,981.02
Debt Weighting	54.57
Equity Weighting	45.43
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	658.20	675.35	696.65	720.85	685.80	693.29	700.87	708.52	716.27	724.09
Operating Cash Flow	68.16	196.18	210.61	205.96	210.03	178.64	180.59	182.56	184.56	186.58
Capital Expenditure	-3.32	-4.89	-3.72	-2.88	-2.81	-3.57	-3.61	-3.65	-3.69	-3.73
Free Cash Flow	64.83	191.29	206.89	203.08	207.22	175.07	176.98	178.92	180.87	182.85
WACC
PV LFCF						166.56	160.19	154.07	148.18	142.52
SUM PV LFCF										771.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.11
Free cash flow (t + 1)	186.50
Terminal Value	5,996.94
Present Value of Terminal Value	4,674.22

Intrinsic Value

Enterprise Value	5,445.74
Net Debt	884.17
Equity Value	4,561.57
Shares Outstanding	63.52
Equity Value Per Share	71.82