Discounted Cash Flow (DCF) Analysis Levered

Titan Machinery Inc. (TITN)

$26.77

-1.10 (-3.95%)

All numbers are in Millions, Currency in USD

Stock DCF: 80.27 | 26.77 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,261.51	1,305.17	1,411.22	1,711.91	2,209.31	2,551.47	2,946.62	3,402.97	3,929.99	4,538.64
Revenue (%)
Operating Cash Flow	46.61	0.95	173	158.92	10.82	131.65	152.04	175.58	202.78	234.18
Operating Cash Flow (%)
Capital Expenditure	-11.95	-25.02	-20.09	-37.63	-37.21	-41.69	-48.15	-55.60	-64.21	-74.16
Capital Expenditure (%)
Free Cash Flow	34.65	-24.06	152.91	121.29	-26.40	89.96	103.89	119.98	138.56	160.02

Weighted Average Cost Of Capital

Share price	$ 26.77
Beta	1.635
Diluted Shares Outstanding	22.38
Cost of Debt
Tax Rate	24.68
After-tax Cost of Debt	0.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.411
Total Debt	155.56
Total Equity	599.11
Total Capital	754.67
Debt Weighting	20.61
Equity Weighting	79.39
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,261.51	1,305.17	1,411.22	1,711.91	2,209.31	2,551.47	2,946.62	3,402.97	3,929.99	4,538.64
Operating Cash Flow	46.61	0.95	173	158.92	10.82	131.65	152.04	175.58	202.78	234.18
Capital Expenditure	-11.95	-25.02	-20.09	-37.63	-37.21	-41.69	-48.15	-55.60	-64.21	-74.16
Free Cash Flow	34.65	-24.06	152.91	121.29	-26.40	89.96	103.89	119.98	138.56	160.02
WACC
PV LFCF						82.34	87.04	92.01	97.27	102.82
SUM PV LFCF										461.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.25
Free cash flow (t + 1)	163.22
Terminal Value	2,251.35
Present Value of Terminal Value	1,446.56

Intrinsic Value

Enterprise Value	1,908.04
Net Debt	111.65
Equity Value	1,796.40
Shares Outstanding	22.38
Equity Value Per Share	80.27