Discounted Cash Flow (DCF) Analysis Levered

Pioneer Embroideries Limited (PIONEEREMB.NS)

39.6 ₹

-1.25 (-3.06%)

All numbers are in Millions, Currency in USD

Stock DCF: 109.04 | 39.6 | undervalue

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	2,570.29	2,739.67	2,383.72	2,259.70	2,907.57	3,031.61	3,160.95	3,295.80	3,436.41	3,583.02
Revenue (%)
Operating Cash Flow	201.47	194.42	256.28	181.66	133.77	232.38	242.29	252.63	263.41	274.64
Operating Cash Flow (%)
Capital Expenditure	-89.55	-47.59	-22.85	-84.31	-66.52	-73.97	-77.12	-80.41	-83.84	-87.42
Capital Expenditure (%)
Free Cash Flow	111.92	146.82	233.42	97.35	67.25	158.41	165.17	172.22	179.56	187.22

Weighted Average Cost Of Capital

Share price	$ 39.6
Beta	0.856
Diluted Shares Outstanding	25.33
Cost of Debt
Tax Rate	27.42
After-tax Cost of Debt	7.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.556
Total Debt	296.74
Total Equity	1,003
Total Capital	1,299.74
Debt Weighting	22.83
Equity Weighting	77.17
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	2,570.29	2,739.67	2,383.72	2,259.70	2,907.57	3,031.61	3,160.95	3,295.80	3,436.41	3,583.02
Operating Cash Flow	201.47	194.42	256.28	181.66	133.77	232.38	242.29	252.63	263.41	274.64
Capital Expenditure	-89.55	-47.59	-22.85	-84.31	-66.52	-73.97	-77.12	-80.41	-83.84	-87.42
Free Cash Flow	111.92	146.82	233.42	97.35	67.25	158.41	165.17	172.22	179.56	187.22
WACC
PV LFCF						147.19	142.61	138.16	133.86	129.69
SUM PV LFCF										691.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.62
Free cash flow (t + 1)	190.97
Terminal Value	3,398.02
Present Value of Terminal Value	2,353.75

Intrinsic Value

Enterprise Value	3,045.26
Net Debt	283.48
Equity Value	2,761.79
Shares Outstanding	25.33
Equity Value Per Share	109.04