Discounted Cash Flow (DCF) Analysis Levered

Value Line, Inc. (VALU)

$52.89

+4.82 (+10.03%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.44 | 52.89 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	36.26	40.30	40.39	40.52	39.70	40.65	41.64	42.64	43.67	44.73
Revenue (%)
Operating Cash Flow	11.83	13.74	16.41	24.65	18.18	17.40	17.82	18.25	18.69	19.14
Operating Cash Flow (%)
Capital Expenditure	-0.12	-0	-0.18	-0.01	-0.14	-0.09	-0.10	-0.10	-0.10	-0.10
Capital Expenditure (%)
Free Cash Flow	11.71	13.74	16.23	24.63	18.04	17.30	17.72	18.15	18.59	19.04

Weighted Average Cost Of Capital

Share price	$ 52.89
Beta	0.646
Diluted Shares Outstanding	9.46
Cost of Debt
Tax Rate	24.00
After-tax Cost of Debt	3.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.304
Total Debt	6.13
Total Equity	500.27
Total Capital	506.39
Debt Weighting	1.21
Equity Weighting	98.79
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	36.26	40.30	40.39	40.52	39.70	40.65	41.64	42.64	43.67	44.73
Operating Cash Flow	11.83	13.74	16.41	24.65	18.18	17.40	17.82	18.25	18.69	19.14
Capital Expenditure	-0.12	-0	-0.18	-0.01	-0.14	-0.09	-0.10	-0.10	-0.10	-0.10
Free Cash Flow	11.71	13.74	16.23	24.63	18.04	17.30	17.72	18.15	18.59	19.04
WACC
PV LFCF						16.13	15.40	14.71	14.04	13.41
SUM PV LFCF										73.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.26
Free cash flow (t + 1)	19.42
Terminal Value	369.15
Present Value of Terminal Value	260.02

Intrinsic Value

Enterprise Value	333.72
Net Debt	-1.46
Equity Value	335.18
Shares Outstanding	9.46
Equity Value Per Share	35.44