Discounted Cash Flow (DCF) Analysis Levered

Workhorse Group Inc. (WKHS)

$4.28

-0.21 (-4.68%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.97 | 4.28 | 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	10.85	0.76	0.38	1.39	-0.85	-0.78	-0.71	-0.65	-0.59	-0.54
Revenue (%)
Operating Cash Flow	-38.66	-21.75	-36.87	-70.28	-132.58	3.86	3.52	3.21	2.93	2.68
Operating Cash Flow (%)
Capital Expenditure	-0.14	-0.02	-2.01	-5.73	-5.31	0.50	0.46	0.42	0.38	0.35
Capital Expenditure (%)
Free Cash Flow	-38.81	-21.78	-38.88	-76.01	-137.89	4.37	3.98	3.63	3.32	3.03

Weighted Average Cost Of Capital

Share price	$ 4.28
Beta	2.935
Diluted Shares Outstanding	99.95
Cost of Debt
Tax Rate	5.16
After-tax Cost of Debt	24.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	16.695
Total Debt	26.26
Total Equity	427.79
Total Capital	454.05
Debt Weighting	5.78
Equity Weighting	94.22
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	10.85	0.76	0.38	1.39	-0.85	-0.78	-0.71	-0.65	-0.59	-0.54
Operating Cash Flow	-38.66	-21.75	-36.87	-70.28	-132.58	3.86	3.52	3.21	2.93	2.68
Capital Expenditure	-0.14	-0.02	-2.01	-5.73	-5.31	0.50	0.46	0.42	0.38	0.35
Free Cash Flow	-38.81	-21.78	-38.88	-76.01	-137.89	4.37	3.98	3.63	3.32	3.03
WACC
PV LFCF						3.73	2.90	2.26	1.76	1.37
SUM PV LFCF										12.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	17.14
Free cash flow (t + 1)	3.09
Terminal Value	20.39
Present Value of Terminal Value	9.24

Intrinsic Value

Enterprise Value	21.27
Net Debt	-175.39
Equity Value	196.66
Shares Outstanding	99.95
Equity Value Per Share	1.97