Discounted Cash Flow (DCF) Analysis Levered

ReTo Eco-Solutions, Inc. (RETO)

$1.385

-0.04 (-2.46%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,360.79 | 1.385 | 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	35.55	37.57	29.55	9.73	3.60	2.29	1.45	0.92	0.59	0.37
Revenue (%)
Operating Cash Flow	2.53	-0.90	0.09	0.98	-2.76	-0.28	-0.18	-0.11	-0.07	-0.05
Operating Cash Flow (%)
Capital Expenditure	-4.64	-9.28	-1.45	-0.25	-0.02	-0.21	-0.13	-0.08	-0.05	-0.03
Capital Expenditure (%)
Free Cash Flow	-2.10	-10.18	-1.37	0.73	-2.78	-0.49	-0.31	-0.20	-0.13	-0.08

Weighted Average Cost Of Capital

Share price	$ 1.385
Beta	1.607
Diluted Shares Outstanding	0.02
Cost of Debt
Tax Rate	-3.08
After-tax Cost of Debt	1.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.195
Total Debt	5.87
Total Equity	0.03
Total Capital	5.90
Debt Weighting	99.43
Equity Weighting	0.57
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	35.55	37.57	29.55	9.73	3.60	2.29	1.45	0.92	0.59	0.37
Operating Cash Flow	2.53	-0.90	0.09	0.98	-2.76	-0.28	-0.18	-0.11	-0.07	-0.05
Capital Expenditure	-4.64	-9.28	-1.45	-0.25	-0.02	-0.21	-0.13	-0.08	-0.05	-0.03
Free Cash Flow	-2.10	-10.18	-1.37	0.73	-2.78	-0.49	-0.31	-0.20	-0.13	-0.08
WACC
PV LFCF						-0.44	-0.28	-0.17	-0.11	-0.07
SUM PV LFCF										-1.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	1.81
Free cash flow (t + 1)	-0.08
Terminal Value	43.10
Present Value of Terminal Value	39.40

Intrinsic Value

Enterprise Value	38.24
Net Debt	5.41
Equity Value	32.83
Shares Outstanding	0.02
Equity Value Per Share	1,360.79