Discounted Cash Flow (DCF) Analysis Levered

UTStarcom Holdings Corp. (UTSI)

$3.7021

-0.11 (-2.83%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.97 | 3.7021 | 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	98.29	115.94	65.62	24.31	15.92	11.03	7.64	5.29	3.67	2.54
Revenue (%)
Operating Cash Flow	3.84	-26.11	-24.15	-3.40	19.83	1.22	0.84	0.58	0.40	0.28
Operating Cash Flow (%)
Capital Expenditure	-0.73	-0.22	-0.51	-0.11	-0.35	-0.10	-0.07	-0.05	-0.03	-0.02
Capital Expenditure (%)
Free Cash Flow	3.11	-26.33	-24.65	-3.51	19.48	1.12	0.78	0.54	0.37	0.26

Weighted Average Cost Of Capital

Share price	$ 3.7,021
Beta	0.742
Diluted Shares Outstanding	9.01
Cost of Debt
Tax Rate	-129.99
After-tax Cost of Debt	23.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.197
Total Debt	4.91
Total Equity	33.34
Total Capital	38.25
Debt Weighting	12.83
Equity Weighting	87.17
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	98.29	115.94	65.62	24.31	15.92	11.03	7.64	5.29	3.67	2.54
Operating Cash Flow	3.84	-26.11	-24.15	-3.40	19.83	1.22	0.84	0.58	0.40	0.28
Capital Expenditure	-0.73	-0.22	-0.51	-0.11	-0.35	-0.10	-0.07	-0.05	-0.03	-0.02
Free Cash Flow	3.11	-26.33	-24.65	-3.51	19.48	1.12	0.78	0.54	0.37	0.26
WACC
PV LFCF						1.03	0.65	0.41	0.26	0.17
SUM PV LFCF										2.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.24
Free cash flow (t + 1)	0.26
Terminal Value	3.63
Present Value of Terminal Value	2.34

Intrinsic Value

Enterprise Value	4.85
Net Debt	-48.89
Equity Value	53.74
Shares Outstanding	9.01
Equity Value Per Share	5.97