Discounted Cash Flow (DCF) Analysis Levered

Rand Capital Corporation (RAND)

$13.15

+0.25 (+1.94%)

All numbers are in Millions, Currency in USD

Stock DCF: -1.39 | 13.15 | overvalue

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	0.99	-0.74	3.04	20.79	1.46	0.75	0.38	0.20	0.10	0.05
Revenue (%)
Operating Cash Flow	-2.90	4.74	-0.62	-3.94	0.25	-1.43	-0.73	-0.37	-0.19	-0.10
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	-1.43	-0.73	-0.37	-0.19	-0.10

Weighted Average Cost Of Capital

Share price	$ 13.15
Beta	0.322
Diluted Shares Outstanding	2.58
Cost of Debt
Tax Rate	4.64
After-tax Cost of Debt	4.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.229
Total Debt	-
Total Equity	33.95
Total Capital	33.95
Debt Weighting	0.00
Equity Weighting	100.00
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	0.99	-0.74	3.04	20.79	1.46	0.75	0.38	0.20	0.10	0.05
Operating Cash Flow	-2.90	4.74	-0.62	-3.94	0.25	-1.43	-0.73	-0.37	-0.19	-0.10
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	-1.43	-0.73	-0.37	-0.19	-0.10
WACC
PV LFCF						-1.36	-0.66	-0.32	-0.16	-0.08
SUM PV LFCF										-2.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.23
Free cash flow (t + 1)	-0.10
Terminal Value	-3.09
Present Value of Terminal Value	-2.40

Intrinsic Value

Enterprise Value	-4.97
Net Debt	-1.37
Equity Value	-3.60
Shares Outstanding	2.58
Equity Value Per Share	-1.39