Discounted Cash Flow (DCF) Analysis Levered

STAAR Surgical Company (STAA)

$33.4

+2.08 (+6.64%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.12 | 33.4 | overvalue

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	123.95	150.19	163.46	230.47	284.39	351.50	434.45	536.97	663.68	820.30
Revenue (%)
Operating Cash Flow	12.77	25.80	20.95	43.96	35.71	50.56	62.50	77.24	95.47	118
Operating Cash Flow (%)
Capital Expenditure	-2.25	-10.18	-8.40	-13.65	-18.11	-18.29	-22.61	-27.94	-34.53	-42.68
Capital Expenditure (%)
Free Cash Flow	10.52	15.62	12.55	30.32	17.61	32.27	39.89	49.30	60.94	75.32

Weighted Average Cost Of Capital

Share price	$ 33.4
Beta	0.901
Diluted Shares Outstanding	49.38
Cost of Debt
Tax Rate	14.84
After-tax Cost of Debt	6.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.508
Total Debt	31.04
Total Equity	1,649.29
Total Capital	1,680.33
Debt Weighting	1.85
Equity Weighting	98.15
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	123.95	150.19	163.46	230.47	284.39	351.50	434.45	536.97	663.68	820.30
Operating Cash Flow	12.77	25.80	20.95	43.96	35.71	50.56	62.50	77.24	95.47	118
Capital Expenditure	-2.25	-10.18	-8.40	-13.65	-18.11	-18.29	-22.61	-27.94	-34.53	-42.68
Free Cash Flow	10.52	15.62	12.55	30.32	17.61	32.27	39.89	49.30	60.94	75.32
WACC
PV LFCF						19.81	22.58	25.73	29.32	33.40
SUM PV LFCF										196.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.47
Free cash flow (t + 1)	76.82
Terminal Value	1,187.39
Present Value of Terminal Value	790.76

Intrinsic Value

Enterprise Value	987.22
Net Debt	-55.44
Equity Value	1,042.67
Shares Outstanding	49.38
Equity Value Per Share	21.12