Discounted Cash Flow (DCF) Analysis Levered

V2X, Inc. (VEC)

$32.84

+0.21 (+0.64%)

All numbers are in Millions, Currency in USD

Stock DCF: 105.15 | 32.84 | 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	1,114.79	1,279.30	1,382.64	1,395.53	1,783.66	2,013.67	2,273.33	2,566.48	2,897.43	3,271.05
Revenue (%)
Operating Cash Flow	35.41	40.06	27.56	64.08	61.34	65.77	74.25	83.83	94.64	106.84
Operating Cash Flow (%)
Capital Expenditure	-2.34	-10.02	-16.15	-4.50	-9.78	-12.21	-13.79	-15.57	-17.57	-19.84
Capital Expenditure (%)
Free Cash Flow	33.07	30.03	11.41	59.58	51.56	53.56	60.47	68.26	77.06	87

Weighted Average Cost Of Capital

Share price	$ 32.84
Beta	1.121
Diluted Shares Outstanding	11.75
Cost of Debt
Tax Rate	15.37
After-tax Cost of Debt	4.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.929
Total Debt	151.16
Total Equity	385.90
Total Capital	537.07
Debt Weighting	28.15
Equity Weighting	71.85
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	1,114.79	1,279.30	1,382.64	1,395.53	1,783.66	2,013.67	2,273.33	2,566.48	2,897.43	3,271.05
Operating Cash Flow	35.41	40.06	27.56	64.08	61.34	65.77	74.25	83.83	94.64	106.84
Capital Expenditure	-2.34	-10.02	-16.15	-4.50	-9.78	-12.21	-13.79	-15.57	-17.57	-19.84
Free Cash Flow	33.07	30.03	11.41	59.58	51.56	53.56	60.47	68.26	77.06	87
WACC
PV LFCF						49.73	52.13	54.64	57.28	60.04
SUM PV LFCF										273.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.70
Free cash flow (t + 1)	88.74
Terminal Value	1,556.88
Present Value of Terminal Value	1,074.43

Intrinsic Value

Enterprise Value	1,348.25
Net Debt	112.65
Equity Value	1,235.59
Shares Outstanding	11.75
Equity Value Per Share	105.15