Discounted Cash Flow (DCF) Analysis Unlevered

Chimera Investment Corporation (CIM-PA)

$18.7

+0.06 (+0.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 4,364.01 | 18.7 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	452.74	490.79	228.83	1,057.03	2,173.79	4,470.39	9,193.34	18,906.09	38,880.33	79,957.32
Revenue (%)
EBITDA	1,090.84	1,172.56	605.19	1,001.15	-191.80	7,422.72	15,264.82	31,392.07	64,557.72	132,762.83
EBITDA (%)
EBIT	1,090.84	1,172.56	605.19	1,001.15	-253.29	7,296.27	15,004.77	30,857.29	63,457.95	130,501.14
EBIT (%)
Depreciation	-	-	-	-	61.49	126.45	260.04	534.78	1,099.77	2,261.68
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	47.49	109.88	269.09	385.74	11,623.84	6,452.45	13,269.46	27,288.61	56,118.97	115,408.54
Total Cash (%)
Account Receivables	123.44	562.65	81.16	69.51	61.77	1,670.05	3,434.46	7,062.96	14,524.96	29,870.54
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	126.87	69.76	46.67	31.99	356.82	733.80	1,509.06	3,103.38	6,382.09	13,124.76
Accounts Payable (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 18.7
Beta	1.581
Diluted Shares Outstanding	233.94
Cost of Debt
Tax Rate	-14.32
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.962
Total Debt	-
Total Equity	4,374.65
Total Capital	4,374.65
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	452.74	490.79	228.83	1,057.03	2,173.79	4,470.39	9,193.34	18,906.09	38,880.33	79,957.32
EBITDA	1,090.84	1,172.56	605.19	1,001.15	-191.80	7,422.72	15,264.82	31,392.07	64,557.72	132,762.83
EBIT	1,090.84	1,172.56	605.19	1,001.15	-253.29	7,296.27	15,004.77	30,857.29	63,457.95	130,501.14
Tax Rate	0.02%	0.05%	0.18%	0.65%	-14.32%	-2.68%	-2.68%	-2.68%	-2.68%	-2.68%
EBIAT	1,090.59	1,172.01	604.12	994.61	-289.56	7,492.13	15,407.55	31,685.60	65,161.36	134,004.21
Depreciation	-	-	-	-	61.49	126.45	260.04	534.78	1,099.77	2,261.68
Accounts Receivable	-	-439.21	481.49	11.65	7.74	-1,608.28	-1,764.41	-3,628.50	-7,462	-15,345.59
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-57.11	-23.09	-14.68	324.83	376.98	775.26	1,594.32	3,278.71	6,742.67
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
UFCF	-	-	-	-	-	6,387.28	14,678.45	30,186.20	62,077.85	127,662.98
WACC
PV UFCF					-	5,756.38	11,921.95	22,095.77	40,951.60	75,898.42
SUM PV UFCF										156,624.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.96
Free cash flow (t + 1)	130,216.24
Terminal Value	1,453,306.22
Present Value of Terminal Value	864,022.18

Intrinsic Value

Enterprise Value	1,020,646.29
Net Debt	-264.60
Equity Value	1,020,910.89
Shares Outstanding	233.94
Equity Value Per Share	4,364.01