Discounted Cash Flow (DCF) Analysis Unlevered
Culp, Inc. (CULP)
$5.44
+0.48 (+9.68%)
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 | 296.67 | 256.17 | 299.72 | 294.84 | 234.93 | 224.01 | 213.60 | 203.67 | 194.20 | 185.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 20.11 | 14.54 | 17.42 | 7.24 | -19.71 | 5.53 | 5.27 | 5.03 | 4.79 | 4.57 |
| EBITDA (%) | ||||||||||
| EBIT | 11.21 | 6.07 | 10.11 | -0.31 | -26.99 | -0.93 | -0.89 | -0.84 | -0.80 | -0.77 |
| EBIT (%) | ||||||||||
| Depreciation | 8.90 | 8.47 | 7.31 | 7.55 | 7.28 | 6.46 | 6.16 | 5.87 | 5.60 | 5.34 |
| 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 | 45.01 | 74.98 | 45.71 | 14.55 | 22.37 | 33.22 | 31.68 | 30.20 | 28.80 | 27.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 24.53 | 26.68 | 37.73 | 23.08 | 25 | 22.28 | 21.25 | 20.26 | 19.32 | 18.42 |
| Account Receivables (%) | ||||||||||
| Inventories | 50.86 | 47.91 | 55.92 | 66.56 | 45.08 | 43.13 | 41.12 | 39.21 | 37.39 | 35.65 |
| Inventories (%) | ||||||||||
| Accounts Payable | 24.46 | 23.11 | 42.89 | 20.57 | 29.50 | 22.90 | 21.83 | 20.82 | 19.85 | 18.93 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -3.26 | -4.58 | -6.66 | -5.70 | -2.11 | -3.56 | -3.39 | -3.23 | -3.08 | -2.94 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 5.44 |
|---|---|
| Beta | 1.285 |
| Diluted Shares Outstanding | 12.28 |
| Cost of Debt | |
| Tax Rate | -11.03 |
| After-tax Cost of Debt | 98.72% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.202 |
| Total Debt | 6.25 |
| Total Equity | 66.82 |
| Total Capital | 73.07 |
| Debt Weighting | 8.56 |
| Equity Weighting | 91.44 |
| 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 | 296.67 | 256.17 | 299.72 | 294.84 | 234.93 | 224.01 | 213.60 | 203.67 | 194.20 | 185.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 20.11 | 14.54 | 17.42 | 7.24 | -19.71 | 5.53 | 5.27 | 5.03 | 4.79 | 4.57 |
| EBIT | 11.21 | 6.07 | 10.11 | -0.31 | -26.99 | -0.93 | -0.89 | -0.84 | -0.80 | -0.77 |
| Tax Rate | 52.68% | -43.68% | 70.42% | -888.00% | -11.03% | -163.92% | -163.92% | -163.92% | -163.92% | -163.92% |
| EBIAT | 5.31 | 8.72 | 2.99 | -3.04 | -29.97 | -2.45 | -2.34 | -2.23 | -2.12 | -2.03 |
| Depreciation | 8.90 | 8.47 | 7.31 | 7.55 | 7.28 | 6.46 | 6.16 | 5.87 | 5.60 | 5.34 |
| Accounts Receivable | - | -2.15 | -11.05 | 14.64 | -1.91 | 2.71 | 1.04 | 0.99 | 0.94 | 0.90 |
| Inventories | - | 2.95 | -8.01 | -10.64 | 21.48 | 1.95 | 2.01 | 1.91 | 1.82 | 1.74 |
| Accounts Payable | - | -1.35 | 19.78 | -22.32 | 8.93 | -6.60 | -1.06 | -1.02 | -0.97 | -0.92 |
| Capital Expenditure | -3.26 | -4.58 | -6.66 | -5.70 | -2.11 | -3.56 | -3.39 | -3.23 | -3.08 | -2.94 |
| UFCF | 10.94 | 12.06 | 4.36 | -19.50 | 3.69 | -1.49 | 2.40 | 2.29 | 2.19 | 2.08 |
| WACC | ||||||||||
| PV UFCF | -1.26 | 1.73 | 1.40 | 1.14 | 0.92 | |||||
| SUM PV UFCF | 3.93 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 17.78 |
| Free cash flow (t + 1) | 2.13 |
| Terminal Value | 13.47 |
| Present Value of Terminal Value | 5.94 |
Intrinsic Value
| Enterprise Value | 9.87 |
|---|---|
| Net Debt | -14.71 |
| Equity Value | 24.58 |
| Shares Outstanding | 12.28 |
| Equity Value Per Share | 2.00 |