Discounted Cash Flow (DCF) Analysis Unlevered
BAB, Inc. (BABB)
$0.7265
+0.02 (+2.25%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 2.17 | 3.07 | 2.37 | 3.07 | 3.29 | 3.74 | 4.25 | 4.84 | 5.51 | 6.26 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 0.54 | 0.48 | 0.24 | 0.78 | 0.61 | 0.70 | 0.80 | 0.91 | 1.04 | 1.18 |
EBITDA (%) | ||||||||||
EBIT | 0.54 | 0.47 | 0.23 | 0.77 | 0.61 | 0.70 | 0.80 | 0.91 | 1.03 | 1.17 |
EBIT (%) | ||||||||||
Depreciation | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0.01 | 0.01 | 0.01 |
Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Total Cash | 1.07 | 1.10 | 1.24 | 1.46 | 1.62 | 1.75 | 1.99 | 2.26 | 2.57 | 2.93 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 0.09 | 0.08 | 0.08 | 0.12 | 0.09 | 0.13 | 0.15 | 0.17 | 0.19 | 0.21 |
Account Receivables (%) | ||||||||||
Inventories | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
Inventories (%) | ||||||||||
Accounts Payable | 0.04 | 0 | 0.01 | 0 | 0.01 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -0.01 | -0.01 | -0.01 | -0 | -0.01 | -0.01 | -0.02 | -0.02 | -0.02 | -0.02 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 0.7,265 |
---|---|
Beta | 0.131 |
Diluted Shares Outstanding | 7.26 |
Cost of Debt | |
Tax Rate | 28.97 |
After-tax Cost of Debt | 0.19% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 4.428 |
Total Debt | 0.15 |
Total Equity | 5.28 |
Total Capital | 5.43 |
Debt Weighting | 2.83 |
Equity Weighting | 97.17 |
Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 2.17 | 3.07 | 2.37 | 3.07 | 3.29 | 3.74 | 4.25 | 4.84 | 5.51 | 6.26 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 0.54 | 0.48 | 0.24 | 0.78 | 0.61 | 0.70 | 0.80 | 0.91 | 1.04 | 1.18 |
EBIT | 0.54 | 0.47 | 0.23 | 0.77 | 0.61 | 0.70 | 0.80 | 0.91 | 1.03 | 1.17 |
Tax Rate | 5.58% | 5.27% | 128.31% | 15.47% | 28.97% | 36.72% | 36.72% | 36.72% | 36.72% | 36.72% |
EBIAT | 0.51 | 0.45 | -0.07 | 0.65 | 0.43 | 0.44 | 0.50 | 0.57 | 0.65 | 0.74 |
Depreciation | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0.01 | 0.01 | 0.01 |
Accounts Receivable | - | 0.01 | 0 | -0.04 | 0.02 | -0.04 | -0.02 | -0.02 | -0.02 | -0.03 |
Inventories | - | -0 | 0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
Accounts Payable | - | -0.03 | 0.01 | -0.01 | 0 | 0.01 | 0 | 0 | 0 | 0 |
Capital Expenditure | -0.01 | -0.01 | -0.01 | -0 | -0.01 | -0.01 | -0.02 | -0.02 | -0.02 | -0.02 |
UFCF | 0.50 | 0.42 | -0.07 | 0.61 | 0.45 | 0.41 | 0.48 | 0.54 | 0.62 | 0.70 |
WACC | ||||||||||
PV UFCF | 0.39 | 0.44 | 0.48 | 0.52 | 0.57 | |||||
SUM PV UFCF | 2.41 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 4.31 |
Free cash flow (t + 1) | 0.72 |
Terminal Value | 31.11 |
Present Value of Terminal Value | 25.19 |
Intrinsic Value
Enterprise Value | 27.60 |
---|---|
Net Debt | -1.47 |
Equity Value | 29.07 |
Shares Outstanding | 7.26 |
Equity Value Per Share | 4.00 |