Discounted Cash Flow (DCF) Analysis Levered

Northern Technologies International... (NTIC)

$13.2

+0.56 (+4.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.16 | 13.2 | overvalue

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 55.7547.6456.4974.1686.3697.53110.15124.40140.49158.67
Revenue (%)
Operating Cash Flow 5.484.912.891.155.546.487.328.269.3310.54
Operating Cash Flow (%)
Capital Expenditure -1.07-0.81-5.64-1.70-3.36-3.86-4.36-4.93-5.56-6.28
Capital Expenditure (%)
Free Cash Flow 4.404.10-2.75-0.562.182.622.963.343.774.26

Weighted Average Cost Of Capital

Share price $ 13.2
Beta 0.740
Diluted Shares Outstanding 9.69
Cost of Debt
Tax Rate 47.88
After-tax Cost of Debt 3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.706
Total Debt 6.79
Total Equity 127.95
Total Capital 134.74
Debt Weighting 5.04
Equity Weighting 94.96
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 55.7547.6456.4974.1686.3697.53110.15124.40140.49158.67
Operating Cash Flow 5.484.912.891.155.546.487.328.269.3310.54
Capital Expenditure -1.07-0.81-5.64-1.70-3.36-3.86-4.36-4.93-5.56-6.28
Free Cash Flow 4.404.10-2.75-0.562.182.622.963.343.774.26
WACC
PV LFCF 2.432.562.692.822.97
SUM PV LFCF 13.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.50
Free cash flow (t + 1) 4.41
Terminal Value 110.16
Present Value of Terminal Value 76.73

Intrinsic Value

Enterprise Value 90.20
Net Debt 1.38
Equity Value 88.82
Shares Outstanding 9.69
Equity Value Per Share 9.16