Discounted Cash Flow (DCF) Analysis Unlevered

Culp, Inc. (CULP)

$5.05

-0.10 (-1.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 18.40 | 5.05 | undervalue

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 323.73296.67256.17299.72294.84289.95285.14280.41275.75271.18
Revenue (%)
EBITDA 34.7321.04-16.7318.277.2411.5111.3211.1310.9410.76
EBITDA (%)
EBIT 26.7112.14-25.2110.96-0.313.513.453.403.343.28
EBIT (%)
Depreciation 8.028.908.477.317.557.997.867.737.607.48
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 49.4445.0174.9845.7114.5546.3345.5744.8144.0743.33
Total Cash (%)
Account Receivables 26.3124.5326.6837.7323.0827.3926.9326.4826.0425.61
Account Receivables (%)
Inventories 53.4550.8647.9155.9266.5654.2753.3752.4951.6150.76
Inventories (%)
Accounts Payable 29.0124.4623.1142.8920.5727.5527.1026.6526.2025.77
Accounts Payable (%)
Capital Expenditure -8.01-3.26-4.58-6.66-5.70-5.52-5.43-5.34-5.25-5.16
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 5.05
Beta 1.207
Diluted Shares Outstanding 12.24
Cost of Debt
Tax Rate -888.00
After-tax Cost of Debt 0.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.244
Total Debt 10.28
Total Equity 61.82
Total Capital 72.10
Debt Weighting 14.26
Equity Weighting 85.74
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 323.73296.67256.17299.72294.84289.95285.14280.41275.75271.18
EBITDA 34.7321.04-16.7318.277.2411.5111.3211.1310.9410.76
EBIT 26.7112.14-25.2110.96-0.313.513.453.403.343.28
Tax Rate 22.34%52.68%-273.32%70.42%-888.00%-203.17%-203.17%-203.17%-203.17%-203.17%
EBIAT 20.745.75-94.103.24-3.0410.6510.4710.3010.139.96
Depreciation 8.028.908.477.317.557.997.867.737.607.48
Accounts Receivable -1.78-2.15-11.0514.64-4.300.450.450.440.43
Inventories -2.592.95-8.01-10.6412.290.900.890.870.86
Accounts Payable --4.56-1.3519.78-22.326.98-0.46-0.45-0.44-0.43
Capital Expenditure -8.01-3.26-4.58-6.66-5.70-5.52-5.43-5.34-5.25-5.16
UFCF 20.7611.20-90.764.61-19.5028.0913.8013.5813.3513.13
WACC
PV UFCF 26.0211.8510.799.838.96
SUM PV UFCF 67.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.95
Free cash flow (t + 1) 13.39
Terminal Value 225.06
Present Value of Terminal Value 153.53

Intrinsic Value

Enterprise Value 220.97
Net Debt -4.27
Equity Value 225.24
Shares Outstanding 12.24
Equity Value Per Share 18.40