Discounted Cash Flow (DCF) Analysis Levered

Startek, Inc. (SRT)

$3.45

-0.07 (-1.99%)
All numbers are in Millions, Currency in USD
Stock DCF: 38.23 | 3.45 | 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 292.60420.32657.91640.22848.261,123.911,489.121,973.022,614.163,463.63
Revenue (%)
Operating Cash Flow 15.531.5126.5666.0542.4556.2574.5398.75130.83173.35
Operating Cash Flow (%)
Capital Expenditure -7.18-7.69-15.56-17.41-19.87-26.33-34.89-46.22-61.24-81.14
Capital Expenditure (%)
Free Cash Flow 8.34-6.1810.9948.6422.5829.9239.6452.5269.5992.21

Weighted Average Cost Of Capital

Share price $ 3.45
Beta 1.292
Diluted Shares Outstanding 41.09
Cost of Debt
Tax Rate -33.00
After-tax Cost of Debt 4.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.927
Total Debt 238.68
Total Equity 141.77
Total Capital 380.46
Debt Weighting 62.74
Equity Weighting 37.26
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 292.60420.32657.91640.22848.261,123.911,489.121,973.022,614.163,463.63
Operating Cash Flow 15.531.5126.5666.0542.4556.2574.5398.75130.83173.35
Capital Expenditure -7.18-7.69-15.56-17.41-19.87-26.33-34.89-46.22-61.24-81.14
Free Cash Flow 8.34-6.1810.9948.6422.5829.9239.6452.5269.5992.21
WACC
PV LFCF 17.5721.8627.2033.8442.1152.40
SUM PV LFCF 228.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.48
Free cash flow (t + 1) 94.05
Terminal Value 2,099.33
Present Value of Terminal Value 1,533.70

Intrinsic Value

Enterprise Value 1,761.77
Net Debt 190.74
Equity Value 1,571.02
Shares Outstanding 41.09
Equity Value Per Share 38.23