Discounted Cash Flow (DCF) Analysis Unlevered
Euro Tech Holdings Company Limited (CLWT)
$1.39
-0.04 (-2.80%)
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 | 17.35 | 20.10 | 17.40 | 13.36 | 21.39 | 23.49 | 25.80 | 28.33 | 31.12 | 34.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 0.57 | -0.16 | -0.04 | 0.93 | 0.94 | 0.64 | 0.70 | 0.77 | 0.85 | 0.93 |
| EBITDA (%) | ||||||||||
| EBIT | 0.51 | -0.22 | -0.11 | 0.88 | 0.90 | 0.57 | 0.62 | 0.68 | 0.75 | 0.82 |
| EBIT (%) | ||||||||||
| Depreciation | 0.06 | 0.06 | 0.07 | 0.05 | 0.04 | 0.07 | 0.08 | 0.09 | 0.10 | 0.11 |
| 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 | 3.38 | 5.27 | 5.99 | 3.52 | 5.27 | 6.16 | 6.76 | 7.43 | 8.16 | 8.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 4.11 | 6.22 | 4.28 | 3.91 | 3.93 | 5.96 | 6.54 | 7.19 | 7.89 | 8.67 |
| Account Receivables (%) | ||||||||||
| Inventories | 0.50 | 0.40 | 0.59 | 0.34 | 0.55 | 0.63 | 0.69 | 0.76 | 0.83 | 0.91 |
| Inventories (%) | ||||||||||
| Accounts Payable | 3.68 | 4.90 | 3.91 | 2.39 | 3.15 | 4.73 | 5.20 | 5.71 | 6.27 | 6.89 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.02 | -0.08 | -0.02 | -0.01 | -0 | -0.04 | -0.04 | -0.04 | -0.05 | -0.05 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.39 |
|---|---|
| Beta | 1.032 |
| Diluted Shares Outstanding | 7.73 |
| Cost of Debt | |
| Tax Rate | 22.49 |
| After-tax Cost of Debt | 0.40% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.301 |
| Total Debt | 0.59 |
| Total Equity | 10.75 |
| Total Capital | 11.34 |
| Debt Weighting | 5.22 |
| Equity Weighting | 94.78 |
| 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 | 17.35 | 20.10 | 17.40 | 13.36 | 21.39 | 23.49 | 25.80 | 28.33 | 31.12 | 34.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 0.57 | -0.16 | -0.04 | 0.93 | 0.94 | 0.64 | 0.70 | 0.77 | 0.85 | 0.93 |
| EBIT | 0.51 | -0.22 | -0.11 | 0.88 | 0.90 | 0.57 | 0.62 | 0.68 | 0.75 | 0.82 |
| Tax Rate | 183.87% | 109.14% | 15.61% | -54.42% | 22.49% | 55.34% | 55.34% | 55.34% | 55.34% | 55.34% |
| EBIAT | -0.43 | 0.02 | -0.09 | 1.35 | 0.70 | 0.25 | 0.28 | 0.31 | 0.33 | 0.37 |
| Depreciation | 0.06 | 0.06 | 0.07 | 0.05 | 0.04 | 0.07 | 0.08 | 0.09 | 0.10 | 0.11 |
| Accounts Receivable | - | -2.11 | 1.94 | 0.37 | -0.02 | -2.03 | -0.59 | -0.64 | -0.71 | -0.78 |
| Inventories | - | 0.10 | -0.19 | 0.24 | -0.21 | -0.08 | -0.06 | -0.07 | -0.07 | -0.08 |
| Accounts Payable | - | 1.22 | -0.99 | -1.52 | 0.76 | 1.58 | 0.47 | 0.51 | 0.56 | 0.62 |
| Capital Expenditure | -0.02 | -0.09 | -0.02 | -0.01 | -0 | -0.04 | -0.04 | -0.04 | -0.05 | -0.05 |
| UFCF | -0.39 | -0.80 | 0.73 | 0.49 | 1.26 | -0.23 | 0.14 | 0.15 | 0.17 | 0.18 |
| WACC | ||||||||||
| PV UFCF | -0.22 | 0.12 | 0.12 | 0.12 | 0.13 | |||||
| SUM PV UFCF | 0.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.89 |
| Free cash flow (t + 1) | 0.19 |
| Terminal Value | 3.19 |
| Present Value of Terminal Value | 2.18 |
Intrinsic Value
| Enterprise Value | 2.46 |
|---|---|
| Net Debt | -4.68 |
| Equity Value | 7.13 |
| Shares Outstanding | 7.73 |
| Equity Value Per Share | 0.92 |