Discounted Cash Flow (DCF) Analysis Unlevered

BAB, Inc. (BABB)

$0.7265

+0.02 (+2.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.00 | 0.7265 | undervalue

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 2.173.072.373.073.293.744.254.845.516.26
Revenue (%)
EBITDA 0.540.480.240.780.610.700.800.911.041.18
EBITDA (%)
EBIT 0.540.470.230.770.610.700.800.911.031.17
EBIT (%)
Depreciation 0000.010000.010.010.01
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 1.071.101.241.461.621.751.992.262.572.93
Total Cash (%)
Account Receivables 0.090.080.080.120.090.130.150.170.190.21
Account Receivables (%)
Inventories 000000.010.010.010.010.01
Inventories (%)
Accounts Payable 0.0400.0100.010.020.020.020.030.03
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 2.173.072.373.073.293.744.254.845.516.26
EBITDA 0.540.480.240.780.610.700.800.911.041.18
EBIT 0.540.470.230.770.610.700.800.911.031.17
Tax Rate 5.58%5.27%128.31%15.47%28.97%36.72%36.72%36.72%36.72%36.72%
EBIAT 0.510.45-0.070.650.430.440.500.570.650.74
Depreciation 0000.010000.010.010.01
Accounts Receivable -0.010-0.040.02-0.04-0.02-0.02-0.02-0.03
Inventories --00-0-0-0-0-0-0-0
Accounts Payable --0.030.01-0.0100.010000
Capital Expenditure -0.01-0.01-0.01-0-0.01-0.01-0.02-0.02-0.02-0.02
UFCF 0.500.42-0.070.610.450.410.480.540.620.70
WACC
PV UFCF 0.390.440.480.520.57
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