Discounted Cash Flow (DCF) Analysis Levered

TrueCar, Inc. (TRUE)

$2.81

+0.01 (+0.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.91 | 2.81 | undervalue

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	$ 2.81
Beta	1.015
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	7.916
Total Debt	31.55
Total Equity	298.75
Total Capital	330.30
Debt Weighting	9.55
Equity Weighting	90.45
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						6.92	5.97	5.15	4.44	3.83
SUM PV LFCF										26.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.64
Free cash flow (t + 1)	5.65
Terminal Value	100.18
Present Value of Terminal Value	69.33

Intrinsic Value

Enterprise Value	95.66
Net Debt	-213.66
Equity Value	309.32
Shares Outstanding	106.31
Equity Value Per Share	2.91