Discounted Cash Flow (DCF) Analysis Unlevered

Daily Journal Corporation (DJCO)

$365

+14.90 (+4.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 23.03 | 365 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 48.6649.9449.3954.0167.7173.8580.5487.8495.80104.49
Revenue (%)
EBITDA 1.184.215.617.826.936.937.568.248.999.81
EBITDA (%)
EBIT 0.593.685.137.446.656.296.867.488.168.90
EBIT (%)
Depreciation 0.590.520.480.380.280.640.700.760.830.91
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 205.21206.29360.17288.95324.17380.73415.24452.88493.93538.71
Total Cash (%)
Account Receivables 7.197.339.5217.9518.6916.1817.6519.2520.9922.90
Account Receivables (%)
Inventories 0.040.040.040.060.070.070.070.080.090.09
Inventories (%)
Accounts Payable 4.523.934.245.066.646.637.247.898.619.39
Accounts Payable (%)
Capital Expenditure -0.16-0.18-0.03-0.04-0.09-0.14-0.15-0.17-0.18-0.20
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 365
Beta 0.919
Diluted Shares Outstanding 1.38
Cost of Debt
Tax Rate 23.66
After-tax Cost of Debt 4.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.499
Total Debt 76.28
Total Equity 502.61
Total Capital 578.89
Debt Weighting 13.18
Equity Weighting 86.82
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 48.6649.9449.3954.0167.7173.8580.5487.8495.80104.49
EBITDA 1.184.215.617.826.936.937.568.248.999.81
EBIT 0.593.685.137.446.656.296.867.488.168.90
Tax Rate 19.89%4.38%26.23%26.26%23.66%20.08%20.08%20.08%20.08%20.08%
EBIAT 0.483.523.785.495.085.035.485.986.527.11
Depreciation 0.590.520.480.380.280.640.700.760.830.91
Accounts Receivable --0.14-2.20-8.43-0.742.50-1.47-1.60-1.74-1.90
Inventories -0-0.01-0.01-0.020.01-0.01-0.01-0.01-0.01
Accounts Payable --0.590.310.821.58-0.010.600.660.720.78
Capital Expenditure -0.17-0.18-0.03-0.04-0.09-0.14-0.15-0.17-0.18-0.20
UFCF 0.903.132.34-1.796.108.035.165.626.136.69
WACC
PV UFCF 7.444.424.474.524.56
SUM PV UFCF 25.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.95
Free cash flow (t + 1) 6.72
Terminal Value 90.23
Present Value of Terminal Value 61.55

Intrinsic Value

Enterprise Value 86.96
Net Debt 55.24
Equity Value 31.72
Shares Outstanding 1.38
Equity Value Per Share 23.03