Discounted Cash Flow (DCF) Analysis Unlevered

Capital Southwest Corporation (CSWC)

$17.52

-0.22 (-1.24%)
All numbers are in Millions, Currency in USD
Stock DCF: -1,405,432,223,653.78 | 17.52 | overvalue

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 53.1948.87-0.2469.3383-6,052.35441,326.67-32,180,743.242,346,561,659.57-171,107,036,917.79
Revenue (%)
EBITDA 45.1747.502.1073.2368.996,261.50-456,577.3933,292,798.71-2,427,650,734.89177,019,905,794.39
EBITDA (%)
EBIT 44.2446.11-0.3171.2766.76-5,951.56433,977.04-31,644,821.882,307,483,241.91-168,257,509,300.62
EBIT (%)
Depreciation 0.931.392.401.972.2312,213.06-890,554.4464,937,620.59-4,735,133,976.80345,277,415,095
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 7.919.9213.7431.6111.4369,350.20-5,056,891.09368,739,362.40-26,887,808,141.841,960,610,394,188.85
Total Cash (%)
Account Receivables 5.7910.8712.0811.8514.3461,158.18-4,459,544.12325,181,900.34-23,711,676,699.371,729,012,627,402.99
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 4.524.16-0.025.907.06-514.8737,543.30-2,737,589.44199,620,076.20-14,555,935,322.83
Accounts Payable (%)
Capital Expenditure -----2145.47-10,607.54773,482.83-56,400,970.494,112,656,874.40
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 17.52
Beta 1.173
Diluted Shares Outstanding 22.84
Cost of Debt
Tax Rate 8.59
After-tax Cost of Debt 3.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.234
Total Debt 528.59
Total Equity 400.15
Total Capital 928.74
Debt Weighting 56.91
Equity Weighting 43.09
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 53.1948.87-0.2469.3383-6,052.35441,326.67-32,180,743.242,346,561,659.57-171,107,036,917.79
EBITDA 45.1747.502.1073.2368.996,261.50-456,577.3933,292,798.71-2,427,650,734.89177,019,905,794.39
EBIT 44.2446.11-0.3171.2766.76-5,951.56433,977.04-31,644,821.882,307,483,241.91-168,257,509,300.62
Tax Rate 0.16%2.56%-38.44%4.58%8.59%-4.51%-4.51%-4.51%-4.51%-4.51%
EBIAT 44.1744.92-0.436861.03-6,219.91453,544.94-33,071,677.962,411,527,009.84-175,844,192,892.76
Depreciation 0.931.392.401.972.2312,213.06-890,554.4464,937,620.59-4,735,133,976.80345,277,415,095
Accounts Receivable --5.08-1.220.23-2.49-61,143.844,520,702.30-329,641,444.4624,036,858,599.71-1,752,724,304,102.37
Inventories ----------
Accounts Payable --0.37-4.185.921.16-521.9338,058.17-2,775,132.74202,357,665.64-14,755,555,399.03
Capital Expenditure -----2145.47-10,607.54773,482.83-56,400,970.494,112,656,874.40
UFCF 45.1040.87-3.4276.1259.93-55,527.154,111,143.43-299,777,151.7521,859,208,327.90-1,593,933,980,424.75
WACC
PV UFCF -52,413.773,663,048.69-252,126,574.3917,353,798,671.34-1,194,456,907,439.61
SUM PV UFCF -1,177,351,624,707.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.94
Free cash flow (t + 1) -1,625,812,660,033.24
Terminal Value -41,264,280,711,503.65
Present Value of Terminal Value -30,922,488,466,710.61

Intrinsic Value

Enterprise Value -32,099,840,091,418.34
Net Debt 517.16
Equity Value -32,099,840,091,935.50
Shares Outstanding 22.84
Equity Value Per Share -1,405,432,223,653.78