Discounted Cash Flow (DCF) Analysis Levered

Transcat, Inc. (TRNS)

$79.17

+2.28 (+2.97%)

All numbers are in Millions, Currency in USD

Stock DCF: -2.34 | 79.17 | 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	155.14	160.90	173.10	173.33	55.88	48.01	41.25	35.44	30.45	26.16
Revenue (%)
Operating Cash Flow	9.87	12.56	11.56	23.64	17.62	6.34	5.45	4.68	4.02	3.45
Operating Cash Flow (%)
Capital Expenditure	-5.88	-7	-6.58	-6.62	-10.15	-3.26	-2.80	-2.40	-2.07	-1.78
Capital Expenditure (%)
Free Cash Flow	3.99	5.56	4.98	17.02	7.47	3.08	2.65	2.27	1.95	1.68

Weighted Average Cost Of Capital

Share price	$ 79.17
Beta	0.869
Diluted Shares Outstanding	7.55
Cost of Debt
Tax Rate	26.43
After-tax Cost of Debt	0.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.951
Total Debt	57.65
Total Equity	597.58
Total Capital	655.22
Debt Weighting	8.80
Equity Weighting	91.20
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	155.14	160.90	173.10	173.33	55.88	48.01	41.25	35.44	30.45	26.16
Operating Cash Flow	9.87	12.56	11.56	23.64	17.62	6.34	5.45	4.68	4.02	3.45
Capital Expenditure	-5.88	-7	-6.58	-6.62	-10.15	-3.26	-2.80	-2.40	-2.07	-1.78
Free Cash Flow	3.99	5.56	4.98	17.02	7.47	3.08	2.65	2.27	1.95	1.68
WACC
PV LFCF						2.90	2.34	1.89	1.53	1.23
SUM PV LFCF										9.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.38
Free cash flow (t + 1)	1.71
Terminal Value	39.10
Present Value of Terminal Value	28.70

Intrinsic Value

Enterprise Value	38.58
Net Debt	56.25
Equity Value	-17.67
Shares Outstanding	7.55
Equity Value Per Share	-2.34