Discounted Cash Flow (DCF) Analysis Levered

TrueCar, Inc. (TRUE)

$3.08

-0.09 (-2.84%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.94 | 3.08 | 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	323.15	353.57	353.88	278.68	231.70	215.13	199.74	185.46	172.19	159.88
Revenue (%)
Operating Cash Flow	22.12	24.83	20.34	39.12	14.19	17.12	15.89	14.75	13.70	12.72
Operating Cash Flow (%)
Capital Expenditure	-19.81	-17.10	-11.28	-10.28	-10.69	-9.66	-8.97	-8.33	-7.73	-7.18
Capital Expenditure (%)
Free Cash Flow	2.31	7.73	9.06	28.84	3.50	7.45	6.92	6.43	5.97	5.54

Weighted Average Cost Of Capital

Share price	$ 3.08
Beta	1.024
Diluted Shares Outstanding	106.31
Cost of Debt
Tax Rate	-0.43
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.710
Total Debt	31.55
Total Equity	327.45
Total Capital	359
Debt Weighting	8.79
Equity Weighting	91.21
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	323.15	353.57	353.88	278.68	231.70	215.13	199.74	185.46	172.19	159.88
Operating Cash Flow	22.12	24.83	20.34	39.12	14.19	17.12	15.89	14.75	13.70	12.72
Capital Expenditure	-19.81	-17.10	-11.28	-10.28	-10.69	-9.66	-8.97	-8.33	-7.73	-7.18
Free Cash Flow	2.31	7.73	9.06	28.84	3.50	7.45	6.92	6.43	5.97	5.54
WACC
PV LFCF						6.94	5.99	5.18	4.47	3.86
SUM PV LFCF										26.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.47
Free cash flow (t + 1)	5.65
Terminal Value	103.29
Present Value of Terminal Value	72.05

Intrinsic Value

Enterprise Value	98.49
Net Debt	-213.66
Equity Value	312.15
Shares Outstanding	106.31
Equity Value Per Share	2.94