Discounted Cash Flow (DCF) Analysis Unlevered
Advent Convertible and Income Fund (AVK)
$11.44
+0.22 (+1.96%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 60.76 | -13.35 | 56.95 | 43.13 | 193.70 | 36.91 | 7.03 | 1.34 | 0.26 | 0.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 63.21 | -7.39 | 67.52 | 50.98 | 198.86 | 36.82 | 7.01 | 1.34 | 0.25 | 0.05 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 36.82 | 7.01 | 1.34 | 0.25 | 0.05 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 0.01 | -0 | 0.01 | 0 | 0.02 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 6.68 | 28.06 | 18.07 | 15.53 | 36.59 | -8.31 | -1.58 | -0.30 | -0.06 | -0.01 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 2.55 | 21.47 | 16.08 | 28.21 | 21.72 | -3.82 | -0.73 | -0.14 | -0.03 | -0.01 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 11.44 |
|---|---|
| Beta | 1.327 |
| Diluted Shares Outstanding | 34.53 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 2.87% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.956 |
| Total Debt | 324.03 |
| Total Equity | 395 |
| Total Capital | 719.03 |
| Debt Weighting | 45.07 |
| Equity Weighting | 54.93 |
| Wacc |
Build Up Free Cash
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 60.76 | -13.35 | 56.95 | 43.13 | 193.70 | 36.91 | 7.03 | 1.34 | 0.26 | 0.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 63.21 | -7.39 | 67.52 | 50.98 | 198.86 | 36.82 | 7.01 | 1.34 | 0.25 | 0.05 |
| EBIT | - | - | - | - | - | 36.82 | 7.01 | 1.34 | 0.25 | 0.05 |
| Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| EBIAT | - | - | - | - | - | 36.82 | 7.01 | 1.34 | 0.25 | 0.05 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | -21.38 | 9.98 | 2.54 | -21.06 | 44.90 | -6.73 | -1.28 | -0.24 | -0.05 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 18.92 | -5.39 | 12.13 | -6.49 | -25.54 | 3.09 | 0.59 | 0.11 | 0.02 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 56.17 | 3.38 | 0.64 | 0.12 | 0.02 |
| WACC | ||||||||||
| PV UFCF | 52.62 | 2.97 | 0.53 | 0.09 | 0.02 | |||||
| SUM PV UFCF | 56.23 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.76 |
| Free cash flow (t + 1) | 0.02 |
| Terminal Value | 0.50 |
| Present Value of Terminal Value | 0.36 |
Intrinsic Value
| Enterprise Value | 56.59 |
|---|---|
| Net Debt | 323.37 |
| Equity Value | -266.78 |
| Shares Outstanding | 34.53 |
| Equity Value Per Share | -7.73 |