Discounted Cash Flow (DCF) Analysis Levered

StoneMor Inc. (STON)

$3.44

+0.01 (+0.29%)

All numbers are in Millions, Currency in USD

Stock DCF: -4.27 | 3.44 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	338.23	316.13	289.52	279.54	322.84	320.50	318.17	315.85	313.56	311.28
Revenue (%)
Operating Cash Flow	14.98	26.46	-37.99	1.36	2.63	0.63	0.62	0.62	0.61	0.61
Operating Cash Flow (%)
Capital Expenditure	-10.79	-12.17	-6.42	-6.36	-12	-9.77	-9.70	-9.63	-9.56	-9.49
Capital Expenditure (%)
Free Cash Flow	4.19	14.29	-44.40	-5	-9.37	-9.15	-9.08	-9.02	-8.95	-8.88

Weighted Average Cost Of Capital

Share price	$ 3.44
Beta	0.863
Diluted Shares Outstanding	107
Cost of Debt
Tax Rate	26.61
After-tax Cost of Debt	7.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.724
Total Debt	390.16
Total Equity	368.08
Total Capital	758.25
Debt Weighting	51.46
Equity Weighting	48.54
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	338.23	316.13	289.52	279.54	322.84	320.50	318.17	315.85	313.56	311.28
Operating Cash Flow	14.98	26.46	-37.99	1.36	2.63	0.63	0.62	0.62	0.61	0.61
Capital Expenditure	-10.79	-12.17	-6.42	-6.36	-12	-9.77	-9.70	-9.63	-9.56	-9.49
Free Cash Flow	4.19	14.29	-44.40	-5	-9.37	-9.15	-9.08	-9.02	-8.95	-8.88
WACC
PV LFCF						-8.51	-7.86	-7.25	-6.70	-6.18
SUM PV LFCF										-36.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.52
Free cash flow (t + 1)	-9.06
Terminal Value	-164.17
Present Value of Terminal Value	-114.25

Intrinsic Value

Enterprise Value	-150.74
Net Debt	306.28
Equity Value	-457.02
Shares Outstanding	107
Equity Value Per Share	-4.27