Discounted Cash Flow (DCF) Analysis Levered

SCI Engineered Materials, Inc. (SCIA)

$3.35

-0.05 (-1.47%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.00 | 3.35 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 6.8011.3612.9510.9013.2616.1419.6523.9229.1235.44
Revenue (%)
Operating Cash Flow 0.621.650.530.992.611.822.222.703.294
Operating Cash Flow (%)
Capital Expenditure -0.10-0.38-0.38-0.08-0.71-0.45-0.55-0.66-0.81-0.98
Capital Expenditure (%)
Free Cash Flow 0.511.270.150.911.901.381.682.042.483.02

Weighted Average Cost Of Capital

Share price $ 3.35
Beta 1.603
Diluted Shares Outstanding 4.43
Cost of Debt
Tax Rate -45.81
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.298
Total Debt 0.10
Total Equity 14.85
Total Capital 14.95
Debt Weighting 0.65
Equity Weighting 99.35
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 6.8011.3612.9510.9013.2616.1419.6523.9229.1235.44
Operating Cash Flow 0.621.650.530.992.611.822.222.703.294
Capital Expenditure -0.10-0.38-0.38-0.08-0.71-0.45-0.55-0.66-0.81-0.98
Free Cash Flow 0.511.270.150.911.901.381.682.042.483.02
WACC
PV LFCF 1.901.241.351.481.621.77
SUM PV LFCF 7.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.26
Free cash flow (t + 1) 3.08
Terminal Value 33.28
Present Value of Terminal Value 19.52

Intrinsic Value

Enterprise Value 26.98
Net Debt -4.04
Equity Value 31.03
Shares Outstanding 4.43
Equity Value Per Share 7.00