Discounted Cash Flow (DCF) Analysis Levered

Urban One, Inc. (UONE)

$5.94

-0.30 (-4.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.96 | 5.94 | 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	440.04	439.10	436.93	376.34	441.46	444.47	447.51	450.56	453.63	456.73
Revenue (%)
Operating Cash Flow	28.31	50.23	58.50	73.87	80.15	61.38	61.80	62.22	62.64	63.07
Operating Cash Flow (%)
Capital Expenditure	-7.45	-4.83	-5.15	-4.27	-5.63	-5.67	-5.71	-5.75	-5.79	-5.83
Capital Expenditure (%)
Free Cash Flow	20.86	45.40	53.36	69.59	74.52	55.71	56.09	56.47	56.85	57.24

Weighted Average Cost Of Capital

Share price	$ 5.94
Beta	0.972
Diluted Shares Outstanding	54.14
Cost of Debt
Tax Rate	29.30
After-tax Cost of Debt	5.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.282
Total Debt	818.62
Total Equity	321.57
Total Capital	1,140.19
Debt Weighting	71.80
Equity Weighting	28.20
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	440.04	439.10	436.93	376.34	441.46	444.47	447.51	450.56	453.63	456.73
Operating Cash Flow	28.31	50.23	58.50	73.87	80.15	61.38	61.80	62.22	62.64	63.07
Capital Expenditure	-7.45	-4.83	-5.15	-4.27	-5.63	-5.67	-5.71	-5.75	-5.79	-5.83
Free Cash Flow	20.86	45.40	53.36	69.59	74.52	55.71	56.09	56.47	56.85	57.24
WACC
PV LFCF						52.35	49.53	46.87	44.34	41.96
SUM PV LFCF										235.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.41
Free cash flow (t + 1)	58.39
Terminal Value	1,323.96
Present Value of Terminal Value	970.43

Intrinsic Value

Enterprise Value	1,205.47
Net Debt	666.40
Equity Value	539.08
Shares Outstanding	54.14
Equity Value Per Share	9.96