Discounted Cash Flow (DCF) Analysis Levered

Sinclair Broadcast Group, Inc. (SBGI)

$15.325

+0.23 (+1.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 301.33 | 15.325 | undervalue

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	3,055.08	4,240	5,943	6,134	3,928	4,381.69	4,887.78	5,452.33	6,082.08	6,784.57
Revenue (%)
Operating Cash Flow	647.42	916	1,548	327	799	828.27	923.94	1,030.65	1,149.69	1,282.49
Operating Cash Flow (%)
Capital Expenditure	-105.06	-156	-157	-80	-105	-120.38	-134.29	-149.80	-167.10	-186.40
Capital Expenditure (%)
Free Cash Flow	542.36	760	1,391	247	694	707.88	789.65	880.85	982.59	1,096.08

Weighted Average Cost Of Capital

Share price	$ 15.325
Beta	1.412
Diluted Shares Outstanding	70.66
Cost of Debt
Tax Rate	26.62
After-tax Cost of Debt	4.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.348
Total Debt	4,442
Total Equity	1,082.80
Total Capital	5,524.80
Debt Weighting	80.40
Equity Weighting	19.60
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	3,055.08	4,240	5,943	6,134	3,928	4,381.69	4,887.78	5,452.33	6,082.08	6,784.57
Operating Cash Flow	647.42	916	1,548	327	799	828.27	923.94	1,030.65	1,149.69	1,282.49
Capital Expenditure	-105.06	-156	-157	-80	-105	-120.38	-134.29	-149.80	-167.10	-186.40
Free Cash Flow	542.36	760	1,391	247	694	707.88	789.65	880.85	982.59	1,096.08
WACC
PV LFCF						500.16	526.55	554.33	583.57	614.36
SUM PV LFCF										3,711.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.96
Free cash flow (t + 1)	1,118
Terminal Value	28,232.45
Present Value of Terminal Value	21,136.78

Intrinsic Value

Enterprise Value	24,848.66
Net Debt	3,558
Equity Value	21,290.66
Shares Outstanding	70.66
Equity Value Per Share	301.33