Discounted Cash Flow (DCF) Analysis Levered

Townsquare Media, Inc. (TSQ)

$10.13

-0.13 (-1.27%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.54 | 10.13 | 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	430.60	431.41	371.34	417.96	463.08	474.21	485.60	497.27	509.23	521.46
Revenue (%)
Operating Cash Flow	36.63	39.99	31.49	61.14	50.19	49.05	50.23	51.44	52.68	53.94
Operating Cash Flow (%)
Capital Expenditure	-18.12	-19.68	-15.19	-12.42	-20.82	-19.28	-19.74	-20.22	-20.70	-21.20
Capital Expenditure (%)
Free Cash Flow	18.51	20.31	16.30	48.72	29.36	29.77	30.49	31.22	31.97	32.74

Weighted Average Cost Of Capital

Share price	$ 10.13
Beta	1.631
Diluted Shares Outstanding	18.20
Cost of Debt
Tax Rate	10.77
After-tax Cost of Debt	6.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.953
Total Debt	578.56
Total Equity	184.41
Total Capital	762.96
Debt Weighting	75.83
Equity Weighting	24.17
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	430.60	431.41	371.34	417.96	463.08	474.21	485.60	497.27	509.23	521.46
Operating Cash Flow	36.63	39.99	31.49	61.14	50.19	49.05	50.23	51.44	52.68	53.94
Capital Expenditure	-18.12	-19.68	-15.19	-12.42	-20.82	-19.28	-19.74	-20.22	-20.70	-21.20
Free Cash Flow	18.51	20.31	16.30	48.72	29.36	29.77	30.49	31.22	31.97	32.74
WACC
PV LFCF						27.69	26.36	25.11	23.91	22.76
SUM PV LFCF										125.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.54
Free cash flow (t + 1)	33.40
Terminal Value	602.83
Present Value of Terminal Value	419.13

Intrinsic Value

Enterprise Value	544.95
Net Debt	535.14
Equity Value	9.81
Shares Outstanding	18.20
Equity Value Per Share	0.54