Discounted Cash Flow (DCF) Analysis Unlevered

Daktronics, Inc. (DAKT)

$3.62

+0.32 (+9.70%)

All numbers are in Millions, Currency in USD

Stock DCF: -19.43 | 3.62 | 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	610.53	569.70	608.93	482.03	610.97	620.30	629.77	639.39	649.15	659.06
Revenue (%)
EBITDA	30.43	13.85	17.81	31.43	16.67	24.30	24.68	25.05	25.43	25.82
EBITDA (%)
EBIT	12.65	-4.78	0.10	14.35	1.28	5.50	5.59	5.67	5.76	5.85
EBIT (%)
Depreciation	17.78	18.64	17.72	17.08	15.39	18.80	19.09	19.38	19.68	19.98
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	64.25	61.73	41.63	77.59	21.16	59.24	60.15	61.07	62	62.95
Total Cash (%)
Account Receivables	115.49	102.58	112.11	102.80	146.19	124.79	126.69	128.63	130.59	132.59
Account Receivables (%)
Inventories	75.34	78.83	86.80	74.36	134.39	96.59	98.06	99.56	101.08	102.62
Inventories (%)
Accounts Payable	48.85	44.87	47.83	40.25	76.31	55.30	56.14	57	57.87	58.75
Accounts Payable (%)
Capital Expenditure	-18.13	-17.27	-18.09	-7.89	-20.38	-17.30	-17.56	-17.83	-18.10	-18.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 3.62
Beta	1.012
Diluted Shares Outstanding	45.33
Cost of Debt
Tax Rate	46.57
After-tax Cost of Debt	3.96%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.267
Total Debt	2.31
Total Equity	164.08
Total Capital	166.39
Debt Weighting	1.39
Equity Weighting	98.61
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	610.53	569.70	608.93	482.03	610.97	620.30	629.77	639.39	649.15	659.06
EBITDA	30.43	13.85	17.81	31.43	16.67	24.30	24.68	25.05	25.43	25.82
EBIT	12.65	-4.78	0.10	14.35	1.28	5.50	5.59	5.67	5.76	5.85
Tax Rate	55.25%	80.62%	5,555.56%	22.29%	46.57%	1,152.06%	1,152.06%	1,152.06%	1,152.06%	1,152.06%
EBIAT	5.66	-0.93	-5.29	11.16	0.68	-57.88	-58.77	-59.66	-60.58	-61.50
Depreciation	17.78	18.64	17.72	17.08	15.39	18.80	19.09	19.38	19.68	19.98
Accounts Receivable	-	12.91	-9.53	9.31	-43.39	21.40	-1.91	-1.93	-1.96	-1.99
Inventories	-	-3.50	-7.97	12.45	-60.04	37.81	-1.47	-1.50	-1.52	-1.54
Accounts Payable	-	-3.97	2.96	-7.58	36.06	-21.02	0.84	0.86	0.87	0.88
Capital Expenditure	-18.13	-17.27	-18.09	-7.89	-20.38	-17.30	-17.56	-17.83	-18.10	-18.38
UFCF	5.32	5.88	-20.21	34.52	-71.66	-18.19	-59.78	-60.69	-61.61	-62.56
WACC
PV UFCF						-16.81	-51.05	-47.90	-44.94	-42.16
SUM PV UFCF										-202.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.21
Free cash flow (t + 1)	-63.81
Terminal Value	-1,027.48
Present Value of Terminal Value	-692.52

Intrinsic Value

Enterprise Value	-895.38
Net Debt	-14.83
Equity Value	-880.54
Shares Outstanding	45.33
Equity Value Per Share	-19.43