Discounted Cash Flow (DCF) Analysis Unlevered
Comtech Telecommunications Corp. (CMTL)
$12.34
+0.19 (+1.56%)
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 | 570.59 | 671.80 | 616.72 | 581.70 | 486.24 | 470.98 | 456.21 | 441.89 | 428.03 | 414.60 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 69.81 | 68.44 | 47.52 | -37.76 | -0.33 | 22.20 | 21.50 | 20.83 | 20.17 | 19.54 |
| EBITDA (%) | ||||||||||
| EBIT | 35.08 | 38.19 | 15.36 | -68.16 | -32.04 | -3.75 | -3.64 | -3.52 | -3.41 | -3.30 |
| EBIT (%) | ||||||||||
| Depreciation | 34.73 | 30.25 | 32.16 | 30.40 | 31.71 | 25.95 | 25.14 | 24.35 | 23.58 | 22.84 |
| 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 | 43.48 | 45.58 | 47.88 | 30.86 | 21.65 | 30.07 | 29.13 | 28.22 | 27.33 | 26.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 147.44 | 145.03 | 126.82 | 158.11 | 123.71 | 113.62 | 110.05 | 106.60 | 103.25 | 100.01 |
| Account Receivables (%) | ||||||||||
| Inventories | 75.08 | 74.84 | 82.30 | 80.36 | 96.32 | 67.13 | 65.02 | 62.98 | 61.01 | 59.09 |
| Inventories (%) | ||||||||||
| Accounts Payable | 43.93 | 24.33 | 23.42 | 36.19 | 44.59 | 28.74 | 27.84 | 26.97 | 26.12 | 25.30 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -8.64 | -8.79 | -7.23 | -16.04 | -19.62 | -10.16 | -9.84 | -9.53 | -9.23 | -8.94 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 12.34 |
|---|---|
| Beta | 1.756 |
| Diluted Shares Outstanding | 26.51 |
| Cost of Debt | |
| Tax Rate | 10.85 |
| After-tax Cost of Debt | 2.45% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.980 |
| Total Debt | 183.11 |
| Total Equity | 327.08 |
| Total Capital | 510.19 |
| Debt Weighting | 35.89 |
| Equity Weighting | 64.11 |
| 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 | 570.59 | 671.80 | 616.72 | 581.70 | 486.24 | 470.98 | 456.21 | 441.89 | 428.03 | 414.60 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 69.81 | 68.44 | 47.52 | -37.76 | -0.33 | 22.20 | 21.50 | 20.83 | 20.17 | 19.54 |
| EBIT | 35.08 | 38.19 | 15.36 | -68.16 | -32.04 | -3.75 | -3.64 | -3.52 | -3.41 | -3.30 |
| Tax Rate | -20.88% | 13.38% | 24.60% | 2.00% | 10.85% | 5.99% | 5.99% | 5.99% | 5.99% | 5.99% |
| EBIAT | 42.40 | 33.08 | 11.58 | -66.80 | -28.57 | -3.53 | -3.42 | -3.31 | -3.21 | -3.11 |
| Depreciation | 34.73 | 30.25 | 32.16 | 30.40 | 31.71 | 25.95 | 25.14 | 24.35 | 23.58 | 22.84 |
| Accounts Receivable | - | 2.41 | 18.22 | -31.29 | 34.40 | 10.10 | 3.56 | 3.45 | 3.34 | 3.24 |
| Inventories | - | 0.24 | -7.46 | 1.94 | -15.96 | 29.19 | 2.11 | 2.04 | 1.98 | 1.91 |
| Accounts Payable | - | -19.60 | -0.91 | 12.77 | 8.40 | -15.85 | -0.90 | -0.87 | -0.85 | -0.82 |
| Capital Expenditure | -8.64 | -8.79 | -7.22 | -16.04 | -19.62 | -10.16 | -9.84 | -9.53 | -9.23 | -8.94 |
| UFCF | 68.49 | 37.59 | 46.36 | -69.01 | 10.36 | 35.70 | 16.65 | 16.13 | 15.62 | 15.13 |
| WACC | ||||||||||
| PV UFCF | 32.88 | 14.13 | 12.60 | 11.25 | 10.03 | |||||
| SUM PV UFCF | 80.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.56 |
| Free cash flow (t + 1) | 15.43 |
| Terminal Value | 235.25 |
| Present Value of Terminal Value | 156.02 |
Intrinsic Value
| Enterprise Value | 236.91 |
|---|---|
| Net Debt | 161.45 |
| Equity Value | 75.46 |
| Shares Outstanding | 26.51 |
| Equity Value Per Share | 2.85 |