Discounted Cash Flow (DCF) Analysis Levered

Summer Infant, Inc. (SUMR)

$11.99

-0.01 (-0.08%)

All numbers are in Millions, Currency in USD

Stock DCF: -18.30 | 11.99 | 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	189.87	173.62	173.18	155.30	143.67	134.10	125.17	116.84	109.06	101.80
Revenue (%)
Operating Cash Flow	1.21	5.55	1.54	17.61	-8.39	2.74	2.56	2.39	2.23	2.08
Operating Cash Flow (%)
Capital Expenditure	-3.10	-3.47	-2.33	-1.28	-1.25	-1.79	-1.67	-1.56	-1.45	-1.36
Capital Expenditure (%)
Free Cash Flow	-1.89	2.07	-0.79	16.33	-9.64	0.95	0.89	0.83	0.77	0.72

Weighted Average Cost Of Capital

Share price	$ 11.99
Beta	1.559
Diluted Shares Outstanding	2.15
Cost of Debt
Tax Rate	-68.39
After-tax Cost of Debt	4.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.708
Total Debt	54.71
Total Equity	25.81
Total Capital	80.53
Debt Weighting	67.94
Equity Weighting	32.06
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	189.87	173.62	173.18	155.30	143.67	134.10	125.17	116.84	109.06	101.80
Operating Cash Flow	1.21	5.55	1.54	17.61	-8.39	2.74	2.56	2.39	2.23	2.08
Capital Expenditure	-3.10	-3.47	-2.33	-1.28	-1.25	-1.79	-1.67	-1.56	-1.45	-1.36
Free Cash Flow	-1.89	2.07	-0.79	16.33	-9.64	0.95	0.89	0.83	0.77	0.72
WACC
PV LFCF						0.89	0.78	0.68	0.60	0.52
SUM PV LFCF										3.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.71
Free cash flow (t + 1)	0.74
Terminal Value	15.64
Present Value of Terminal Value	11.30

Intrinsic Value

Enterprise Value	14.78
Net Debt	54.18
Equity Value	-39.40
Shares Outstanding	2.15
Equity Value Per Share	-18.30