Discounted Cash Flow (DCF) Analysis Levered

PCTEL, Inc. (PCTI)

$4.67

+0.06 (+1.30%)

All numbers are in Millions, Currency in USD

Stock DCF: 10.39 | 4.67 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	91.44	82.98	90.62	77.46	87.81	87.54	87.28	87.02	86.75	86.49
Revenue (%)
Operating Cash Flow	9.77	3.94	10.92	13.42	9.84	9.81	9.78	9.75	9.72	9.69
Operating Cash Flow (%)
Capital Expenditure	-2.67	-2.75	-2.26	-4.09	-3.08	-3.07	-3.06	-3.05	-3.04	-3.03
Capital Expenditure (%)
Free Cash Flow	7.10	1.19	8.66	9.33	6.76	6.74	6.72	6.70	6.68	6.66

Weighted Average Cost Of Capital

Share price	$ 4.67
Beta	0.408
Diluted Shares Outstanding	18.12
Cost of Debt
Tax Rate	20.31
After-tax Cost of Debt	3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.444
Total Debt	-
Total Equity	84.63
Total Capital	84.63
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	91.44	82.98	90.62	77.46	87.81	87.54	87.28	87.02	86.75	86.49
Operating Cash Flow	9.77	3.94	10.92	13.42	9.84	9.81	9.78	9.75	9.72	9.69
Capital Expenditure	-2.67	-2.75	-2.26	-4.09	-3.08	-3.07	-3.06	-3.05	-3.04	-3.03
Free Cash Flow	7.10	1.19	8.66	9.33	6.76	6.74	6.72	6.70	6.68	6.66
WACC
PV LFCF						6.39	6.04	5.71	5.40	5.11
SUM PV LFCF										28.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.44
Free cash flow (t + 1)	6.79
Terminal Value	197.43
Present Value of Terminal Value	151.49

Intrinsic Value

Enterprise Value	180.16
Net Debt	-8.19
Equity Value	188.35
Shares Outstanding	18.12
Equity Value Per Share	10.39