Discounted Cash Flow (DCF) Analysis Levered

Steel Connect, Inc. (STCN)

$0.856

+0.01 (+0.72%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.35 | 0.856 | 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	645.26	819.83	782.81	613.77	203.27	169.76	141.78	118.41	98.89	82.59
Revenue (%)
Operating Cash Flow	11.77	20.85	71.62	23.07	-3.13	5.34	4.46	3.73	3.11	2.60
Operating Cash Flow (%)
Capital Expenditure	-18.42	-14.54	-12.07	-3.62	-1.48	-2.54	-2.12	-1.77	-1.48	-1.24
Capital Expenditure (%)
Free Cash Flow	-6.65	6.31	59.55	19.45	-4.62	2.80	2.34	1.95	1.63	1.36

Weighted Average Cost Of Capital

Share price	$ 0.856
Beta	0.303
Diluted Shares Outstanding	59.96
Cost of Debt
Tax Rate	614.45
After-tax Cost of Debt	-52.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.121
Total Debt	30.46
Total Equity	51.33
Total Capital	81.79
Debt Weighting	37.24
Equity Weighting	62.76
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	645.26	819.83	782.81	613.77	203.27	169.76	141.78	118.41	98.89	82.59
Operating Cash Flow	11.77	20.85	71.62	23.07	-3.13	5.34	4.46	3.73	3.11	2.60
Capital Expenditure	-18.42	-14.54	-12.07	-3.62	-1.48	-2.54	-2.12	-1.77	-1.48	-1.24
Free Cash Flow	-6.65	6.31	59.55	19.45	-4.62	2.80	2.34	1.95	1.63	1.36
WACC
PV LFCF						3.35	3.34	3.34	3.34	3.33
SUM PV LFCF										16.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	-16.40
Free cash flow (t + 1)	1.39
Terminal Value	-7.55
Present Value of Terminal Value	-18.48

Intrinsic Value

Enterprise Value	-1.78
Net Debt	-22.68
Equity Value	20.91
Shares Outstanding	59.96
Equity Value Per Share	0.35