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 323.15353.57353.88278.68231.70215.13199.74185.46172.19159.88
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 $ 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 323.15353.57353.88278.68231.70215.13199.74185.46172.19159.88
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 6.925.975.154.443.83
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