Discounted Cash Flow (DCF) Analysis Levered

RadNet, Inc. (RDNT)

$25.03

+0.55 (+2.25%)

All numbers are in Millions, Currency in USD

Stock DCF: -7.22 | 25.03 | 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	975.15	1,154.18	1,071.84	1,315.08	1,430.06	1,582.59	1,751.38	1,938.17	2,144.89	2,373.66
Revenue (%)
Operating Cash Flow	116.75	104.32	233.76	149.49	146.42	203.92	225.67	249.74	276.38	305.85
Operating Cash Flow (%)
Capital Expenditure	-145.37	-101.30	-125.44	-220.69	-119.45	-191.56	-212	-234.61	-259.63	-287.32
Capital Expenditure (%)
Free Cash Flow	-28.62	3.02	108.32	-71.20	26.97	12.36	13.68	15.13	16.75	18.53

Weighted Average Cost Of Capital

Share price	$ 25.03
Beta	1.549
Diluted Shares Outstanding	57.32
Cost of Debt
Tax Rate	75.21
After-tax Cost of Debt	1.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.807
Total Debt	851.74
Total Equity	1,434.74
Total Capital	2,286.49
Debt Weighting	37.25
Equity Weighting	62.75
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	975.15	1,154.18	1,071.84	1,315.08	1,430.06	1,582.59	1,751.38	1,938.17	2,144.89	2,373.66
Operating Cash Flow	116.75	104.32	233.76	149.49	146.42	203.92	225.67	249.74	276.38	305.85
Capital Expenditure	-145.37	-101.30	-125.44	-220.69	-119.45	-191.56	-212	-234.61	-259.63	-287.32
Free Cash Flow	-28.62	3.02	108.32	-71.20	26.97	12.36	13.68	15.13	16.75	18.53
WACC
PV LFCF						11.51	11.87	12.24	12.62	13.01
SUM PV LFCF										61.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.33
Free cash flow (t + 1)	18.91
Terminal Value	354.70
Present Value of Terminal Value	249.03

Intrinsic Value

Enterprise Value	310.29
Net Debt	723.91
Equity Value	-413.62
Shares Outstanding	57.32
Equity Value Per Share	-7.22