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 323.15353.57353.88278.68231.70215.13199.74185.46172.19159.88
Revenue (%)
Operating Cash Flow 22.1224.8320.3439.1214.1917.1215.8914.7513.7012.72
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 2.317.739.0628.843.507.456.926.435.975.54

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 323.15353.57353.88278.68231.70215.13199.74185.46172.19159.88
Operating Cash Flow 22.1224.8320.3439.1214.1917.1215.8914.7513.7012.72
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 2.317.739.0628.843.507.456.926.435.975.54
WACC
PV LFCF 6.945.995.184.473.86
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