Discounted Cash Flow (DCF) Analysis Levered

VSE Corporation (VSEC)

$37.58

-0.23 (-0.61%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.57 | 37.58 | overvalue

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 760.11697.22752.63661.66750.85752.85754.86756.87758.89760.91
Revenue (%)
Operating Cash Flow 50.4218.8517.9935.76-17.6022.2722.3322.3922.4522.51
Operating Cash Flow (%)
Capital Expenditure -3.74-3.12-9.63-4.43-10.52-6.46-6.48-6.49-6.51-6.53
Capital Expenditure (%)
Free Cash Flow 46.6815.748.3631.33-28.1215.8115.8515.8915.9415.98

Weighted Average Cost Of Capital

Share price $ 37.58
Beta 1.379
Diluted Shares Outstanding 12.63
Cost of Debt
Tax Rate 15.71
After-tax Cost of Debt 3.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.334
Total Debt 317.73
Total Equity 474.74
Total Capital 792.47
Debt Weighting 40.09
Equity Weighting 59.91
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 760.11697.22752.63661.66750.85752.85754.86756.87758.89760.91
Operating Cash Flow 50.4218.8517.9935.76-17.6022.2722.3322.3922.4522.51
Capital Expenditure -3.74-3.12-9.63-4.43-10.52-6.46-6.48-6.49-6.51-6.53
Free Cash Flow 46.6815.748.3631.33-28.1215.8115.8515.8915.9415.98
WACC
PV LFCF 14.7113.7212.8011.9511.15
SUM PV LFCF 64.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.47
Free cash flow (t + 1) 16.30
Terminal Value 297.96
Present Value of Terminal Value 207.84

Intrinsic Value

Enterprise Value 272.17
Net Debt 317.21
Equity Value -45.04
Shares Outstanding 12.63
Equity Value Per Share -3.57