Discounted Cash Flow (DCF) Analysis Levered
The RealReal, Inc. (REAL)
$1.16
+0.02 (+1.75%)
All numbers are in Millions, Currency in USD
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 | 207.38 | 318.04 | 299.95 | 467.69 | 603.49 | 803.60 | 1,070.07 | 1,424.89 | 1,897.37 | 2,526.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -47.19 | -54.49 | -134.42 | -142.15 | -91.56 | -209.37 | -278.80 | -371.24 | -494.34 | -658.26 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -19.12 | -34.03 | -26.93 | -47.44 | -22.16 | -68.64 | -91.41 | -121.72 | -162.08 | -215.82 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -66.31 | -88.52 | -161.35 | -189.59 | -113.72 | -278.02 | -370.20 | -492.96 | -656.42 | -874.08 |
Weighted Average Cost Of Capital
| Share price | $ 1.16 |
|---|---|
| Beta | 2.403 |
| Diluted Shares Outstanding | 95.92 |
| Cost of Debt | |
| Tax Rate | -0.09 |
| After-tax Cost of Debt | 1.76% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.948 |
| Total Debt | 595.74 |
| Total Equity | 111.27 |
| Total Capital | 707.01 |
| Debt Weighting | 84.26 |
| Equity Weighting | 15.74 |
| 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 | 207.38 | 318.04 | 299.95 | 467.69 | 603.49 | 803.60 | 1,070.07 | 1,424.89 | 1,897.37 | 2,526.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -47.19 | -54.49 | -134.42 | -142.15 | -91.56 | -209.37 | -278.80 | -371.24 | -494.34 | -658.26 |
| Capital Expenditure | -19.12 | -34.03 | -26.93 | -47.44 | -22.16 | -68.64 | -91.41 | -121.72 | -162.08 | -215.82 |
| Free Cash Flow | -66.31 | -88.52 | -161.35 | -189.59 | -113.72 | -278.02 | -370.20 | -492.96 | -656.42 | -874.08 |
| WACC | ||||||||||
| PV LFCF | -221.76 | -284.37 | -364.66 | -467.63 | -599.66 | |||||
| SUM PV LFCF | -2,339.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.84 |
| Free cash flow (t + 1) | -891.56 |
| Terminal Value | -48,454.43 |
| Present Value of Terminal Value | -40,133.79 |
Intrinsic Value
| Enterprise Value | -42,473.68 |
|---|---|
| Net Debt | 301.95 |
| Equity Value | -42,775.63 |
| Shares Outstanding | 95.92 |
| Equity Value Per Share | -445.95 |