Discounted Cash Flow (DCF) Analysis Levered
TESSCO Technologies Incorporated (TESS)
$4.14
-0.02 (-0.48%)
All numbers are in Millions, Currency in USD
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 | 580.27 | 606.81 | 540.30 | 373.34 | 417.54 | 390.98 | 366.10 | 342.81 | 321 | 300.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -9.25 | 8.25 | 0.91 | -0.68 | -2.50 | -0.66 | -0.62 | -0.58 | -0.54 | -0.51 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3.54 | -5.16 | -6.85 | -11.86 | -9.50 | -6.40 | -5.99 | -5.61 | -5.25 | -4.92 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -12.79 | 3.08 | -5.94 | -12.54 | -12 | -7.06 | -6.61 | -6.19 | -5.80 | -5.43 |
Weighted Average Cost Of Capital
| Share price | $ 4.14 |
|---|---|
| Beta | 0.887 |
| Diluted Shares Outstanding | 8.93 |
| Cost of Debt | |
| Tax Rate | 38.39 |
| After-tax Cost of Debt | 1.03% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.990 |
| Total Debt | 52.56 |
| Total Equity | 36.96 |
| Total Capital | 89.52 |
| Debt Weighting | 58.71 |
| Equity Weighting | 41.29 |
| 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 | 580.27 | 606.81 | 540.30 | 373.34 | 417.54 | 390.98 | 366.10 | 342.81 | 321 | 300.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -9.25 | 8.25 | 0.91 | -0.68 | -2.50 | -0.66 | -0.62 | -0.58 | -0.54 | -0.51 |
| Capital Expenditure | -3.54 | -5.16 | -6.85 | -11.86 | -9.50 | -6.40 | -5.99 | -5.61 | -5.25 | -4.92 |
| Free Cash Flow | -12.79 | 3.08 | -5.94 | -12.54 | -12 | -7.06 | -6.61 | -6.19 | -5.80 | -5.43 |
| WACC | ||||||||||
| PV LFCF | -6.54 | -5.89 | -5.31 | -4.79 | -4.31 | |||||
| SUM PV LFCF | -27.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.90 |
| Free cash flow (t + 1) | -5.53 |
| Terminal Value | -291.31 |
| Present Value of Terminal Value | -240.59 |
Intrinsic Value
| Enterprise Value | -268.48 |
|---|---|
| Net Debt | 50.81 |
| Equity Value | -319.29 |
| Shares Outstanding | 8.93 |
| Equity Value Per Share | -35.76 |