Discounted Cash Flow (DCF) Analysis Levered

UTStarcom Holdings Corp. (UTSI)

$3.7122

+0.27 (+7.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.60 | 3.7122 | undervalue

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	115.94	65.82	24.31	15.92	14.02	8.67	5.36	3.31	2.05	1.27
Revenue (%)
Operating Cash Flow	-26.11	-24.15	-3.40	18.98	7.26	1.70	1.05	0.65	0.40	0.25
Operating Cash Flow (%)
Capital Expenditure	-0.22	-0.51	-0.11	-0.35	-0.25	-0.09	-0.06	-0.04	-0.02	-0.01
Capital Expenditure (%)
Free Cash Flow	-26.33	-24.65	-3.51	18.63	7.01	1.60	0.99	0.61	0.38	0.23

Weighted Average Cost Of Capital

Share price	$ 3.7,122
Beta	0.738
Diluted Shares Outstanding	9.06
Cost of Debt
Tax Rate	-67.77
After-tax Cost of Debt	-46.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.080
Total Debt	3.12
Total Equity	33.62
Total Capital	36.74
Debt Weighting	8.50
Equity Weighting	91.50
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	115.94	65.82	24.31	15.92	14.02	8.67	5.36	3.31	2.05	1.27
Operating Cash Flow	-26.11	-24.15	-3.40	18.98	7.26	1.70	1.05	0.65	0.40	0.25
Capital Expenditure	-0.22	-0.51	-0.11	-0.35	-0.25	-0.09	-0.06	-0.04	-0.02	-0.01
Free Cash Flow	-26.33	-24.65	-3.51	18.63	7.01	1.60	0.99	0.61	0.38	0.23
WACC
PV LFCF						1.55	0.93	0.55	0.33	0.20
SUM PV LFCF										3.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.45
Free cash flow (t + 1)	0.24
Terminal Value	16.46
Present Value of Terminal Value	13.89

Intrinsic Value

Enterprise Value	17.45
Net Debt	-51.38
Equity Value	68.83
Shares Outstanding	9.06
Equity Value Per Share	7.60