Discounted Cash Flow (DCF) Analysis Levered

Transcat, Inc. (TRNS)

$79.31

+0.89 (+1.13%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.69 | 79.31 | 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 155.14160.90173.10173.33204.96220.16236.50254.04272.89293.13
Revenue (%)
Operating Cash Flow 9.8712.5611.5623.6417.6218.9720.3821.8923.5125.26
Operating Cash Flow (%)
Capital Expenditure -5.88-7-6.58-6.62-10.15-9.12-9.80-10.52-11.30-12.14
Capital Expenditure (%)
Free Cash Flow 3.995.564.9817.027.479.8510.5811.3712.2113.12

Weighted Average Cost Of Capital

Share price $ 79.31
Beta 0.799
Diluted Shares Outstanding 7.59
Cost of Debt
Tax Rate 13.72
After-tax Cost of Debt 1.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.388
Total Debt 57.65
Total Equity 601.88
Total Capital 659.53
Debt Weighting 8.74
Equity Weighting 91.26
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 155.14160.90173.10173.33204.96220.16236.50254.04272.89293.13
Operating Cash Flow 9.8712.5611.5623.6417.6218.9720.3821.8923.5125.26
Capital Expenditure -5.88-7-6.58-6.62-10.15-9.12-9.80-10.52-11.30-12.14
Free Cash Flow 3.995.564.9817.027.479.8510.5811.3712.2113.12
WACC
PV LFCF 9.229.269.319.369.41
SUM PV LFCF 46.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.87
Free cash flow (t + 1) 13.38
Terminal Value 274.70
Present Value of Terminal Value 197.05

Intrinsic Value

Enterprise Value 243.62
Net Debt 56.25
Equity Value 187.37
Shares Outstanding 7.59
Equity Value Per Share 24.69