Discounted Cash Flow (DCF) Analysis Unlevered

American Outdoor Brands, Inc. (AOUT)

$9.76

+0.21 (+2.20%)

All numbers are in Millions, Currency in USD

Stock DCF: 88.62 | 9.76 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	177.36	167.38	276.69	247.53	191.21	203.82	217.27	231.60	246.87	263.16
Revenue (%)
EBITDA	31.72	108.70	43.32	29.60	5	46.09	49.13	52.37	55.82	59.50
EBITDA (%)
EBIT	6.73	85.06	23.49	12.64	-11.51	25.35	27.02	28.81	30.71	32.73
EBIT (%)
Depreciation	24.99	23.64	19.83	16.97	16.51	20.74	22.10	23.56	25.12	26.77
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	0.16	0.23	60.80	19.52	21.95	16.95	18.06	19.26	20.53	21.88
Total Cash (%)
Account Receivables	27.02	35.20	42.41	30.11	28.10	31.98	34.09	36.34	38.74	41.29
Account Receivables (%)
Inventories	60.94	60	74.30	121.68	99.73	80.87	86.20	91.89	97.95	104.41
Inventories (%)
Accounts Payable	8.91	8.94	16.02	13.56	11.54	11.28	12.02	12.82	13.66	14.56
Accounts Payable (%)
Capital Expenditure	-2.75	-1.86	-4.18	-6.59	-4.86	-3.82	-4.07	-4.34	-4.63	-4.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 9.76
Beta	0.347
Diluted Shares Outstanding	13.37
Cost of Debt
Tax Rate	2.03
After-tax Cost of Debt	2.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.235
Total Debt	29.59
Total Equity	130.51
Total Capital	160.10
Debt Weighting	18.48
Equity Weighting	81.52
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	177.36	167.38	276.69	247.53	191.21	203.82	217.27	231.60	246.87	263.16
EBITDA	31.72	108.70	43.32	29.60	5	46.09	49.13	52.37	55.82	59.50
EBIT	6.73	85.06	23.49	12.64	-11.51	25.35	27.02	28.81	30.71	32.73
Tax Rate	-8.35%	10.80%	24.23%	-16.83%	2.03%	2.38%	2.38%	2.38%	2.38%	2.38%
EBIAT	7.29	75.87	17.80	14.76	-11.28	24.75	26.38	28.12	29.98	31.95
Depreciation	24.99	23.64	19.83	16.97	16.51	20.74	22.10	23.56	25.12	26.77
Accounts Receivable	-	-8.18	-7.21	12.30	2.01	-3.88	-2.11	-2.25	-2.40	-2.56
Inventories	-	0.94	-14.30	-47.39	21.95	18.87	-5.33	-5.69	-6.06	-6.46
Accounts Payable	-	0.02	7.08	-2.46	-2.02	-0.26	0.74	0.79	0.85	0.90
Capital Expenditure	-2.75	-1.86	-4.18	-6.59	-4.86	-3.82	-4.07	-4.34	-4.63	-4.94
UFCF	29.53	90.43	19.03	-12.40	22.32	56.38	37.71	40.20	42.85	45.68
WACC
PV UFCF						53.42	33.85	34.18	34.52	34.87
SUM PV UFCF										190.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.55
Free cash flow (t + 1)	46.59
Terminal Value	1,312.38
Present Value of Terminal Value	1,001.77

Intrinsic Value

Enterprise Value	1,192.61
Net Debt	7.64
Equity Value	1,184.97
Shares Outstanding	13.37
Equity Value Per Share	88.62