Discounted Cash Flow (DCF) Analysis Levered

WideOpenWest, Inc. (WOW)

$11.36

-0.10 (-0.87%)
All numbers are in Millions, Currency in USD
Stock DCF: -7.30 | 11.36 | 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 1,188.101,153.801,145.801,148.40725.70652.84587.29528.33475.28427.56
Revenue (%)
Operating Cash Flow 195.50269.30266.30277.40174145.15130.58117.47105.6795.06
Operating Cash Flow (%)
Capital Expenditure -301.30-314.10-247.50-234.10-207.70-160.84-144.70-130.17-117.10-105.34
Capital Expenditure (%)
Free Cash Flow -105.80-44.8018.8043.30-33.70-15.69-14.12-12.70-11.43-10.28

Weighted Average Cost Of Capital

Share price $ 11.36
Beta 1.768
Diluted Shares Outstanding 82.72
Cost of Debt
Tax Rate 1,035.07
After-tax Cost of Debt -115.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.865
Total Debt 760.30
Total Equity 939.71
Total Capital 1,700.01
Debt Weighting 44.72
Equity Weighting 55.28
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 1,188.101,153.801,145.801,148.40725.70652.84587.29528.33475.28427.56
Operating Cash Flow 195.50269.30266.30277.40174145.15130.58117.47105.6795.06
Capital Expenditure -301.30-314.10-247.50-234.10-207.70-160.84-144.70-130.17-117.10-105.34
Free Cash Flow -105.80-44.8018.8043.30-33.70-15.69-14.12-12.70-11.43-10.28
WACC
PV LFCF -93.72-152.95-249.63-407.42-664.94
SUM PV LFCF -476.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -44.88
Free cash flow (t + 1) -10.48
Terminal Value 22.36
Present Value of Terminal Value 439.55

Intrinsic Value

Enterprise Value -37.04
Net Debt 567.10
Equity Value -604.14
Shares Outstanding 82.72
Equity Value Per Share -7.30