Discounted Cash Flow (DCF) Analysis Levered

Ready Capital Corporation (RC)

$14.14

+0.20 (+1.43%)

All numbers are in Millions, Currency in USD

Stock DCF: 497.81 | 14.14 | 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	144.76	148.94	136.43	253.49	383.37	509.44	676.95	899.55	1,195.35	1,588.42
Revenue (%)
Operating Cash Flow	352.49	140.30	-52.40	68.89	-34.44	323.48	429.84	571.19	759.01	1,008.60
Operating Cash Flow (%)
Capital Expenditure	-	-1.57	18.87	16.19	24.49	32.54	43.24	57.46	76.35	101.46
Capital Expenditure (%)
Free Cash Flow	352.49	138.73	-33.53	85.08	-9.95	356.02	473.08	628.65	835.36	1,110.05

Weighted Average Cost Of Capital

Share price	$ 14.14
Beta	1.178
Diluted Shares Outstanding	71.79
Cost of Debt
Tax Rate	16.56
After-tax Cost of Debt	3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.410
Total Debt	4,931.50
Total Equity	1,015.07
Total Capital	5,946.58
Debt Weighting	82.93
Equity Weighting	17.07
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	144.76	148.94	136.43	253.49	383.37	509.44	676.95	899.55	1,195.35	1,588.42
Operating Cash Flow	352.49	140.30	-52.40	68.89	-34.44	323.48	429.84	571.19	759.01	1,008.60
Capital Expenditure	-	-1.57	18.87	16.19	24.49	32.54	43.24	57.46	76.35	101.46
Free Cash Flow	352.49	138.73	-33.53	85.08	-9.95	356.02	473.08	628.65	835.36	1,110.05
WACC
PV LFCF						340.91	433.80	551.99	702.38	893.75
SUM PV LFCF										2,922.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.43
Free cash flow (t + 1)	1,132.25
Terminal Value	46,594.81
Present Value of Terminal Value	37,515.54

Intrinsic Value

Enterprise Value	40,438.37
Net Debt	4,701.97
Equity Value	35,736.40
Shares Outstanding	71.79
Equity Value Per Share	497.81