Discounted Cash Flow (DCF) Analysis Levered

Value Line, Inc. (VALU)

$59.16

+3.16 (+5.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 40.42 | 59.16 | 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 35.8736.2640.3040.3940.5241.8243.1644.5445.9647.43
Revenue (%)
Operating Cash Flow 1.0711.8313.7416.4124.6514.3214.7715.2515.7316.24
Operating Cash Flow (%)
Capital Expenditure -0.41-0.12-0-0.18-0.01-0.16-0.17-0.17-0.18-0.18
Capital Expenditure (%)
Free Cash Flow 0.6611.7113.7416.2324.6314.1514.6115.0715.5616.05

Weighted Average Cost Of Capital

Share price $ 59.16
Beta 0.548
Diluted Shares Outstanding 9.60
Cost of Debt
Tax Rate 22.25
After-tax Cost of Debt 0.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.118
Total Debt 7.37
Total Equity 567.75
Total Capital 575.12
Debt Weighting 1.28
Equity Weighting 98.72
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 35.8736.2640.3040.3940.5241.8243.1644.5445.9647.43
Operating Cash Flow 1.0711.8313.7416.4124.6514.3214.7715.2515.7316.24
Capital Expenditure -0.41-0.12-0-0.18-0.01-0.16-0.17-0.17-0.18-0.18
Free Cash Flow 0.6611.7113.7416.2324.6314.1514.6115.0715.5616.05
WACC
PV LFCF 13.3512.9912.6412.3011.97
SUM PV LFCF 63.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.04
Free cash flow (t + 1) 16.37
Terminal Value 405.31
Present Value of Terminal Value 302.30

Intrinsic Value

Enterprise Value 365.56
Net Debt -22.34
Equity Value 387.89
Shares Outstanding 9.60
Equity Value Per Share 40.42