Discounted Cash Flow (DCF) Analysis Unlevered

Duluth Holdings Inc. (DLTH)

$7.2

+0.31 (+4.50%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.08 | 7.2 | 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 471.45568.10615.62638.78698.58771.92852.95942.491,041.431,150.76
Revenue (%)
EBITDA 44.5550.1550.905373.5370.0477.3985.5294.49104.41
EBITDA (%)
EBIT 37.2237.5628.8224.4844.3145.3350.0955.3461.1567.57
EBIT (%)
Depreciation 7.3312.5922.0828.5229.2324.7127.3130.1733.3436.84
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 2.870.730.4947.2277.0529.7032.8236.2640.0744.28
Total Cash (%)
Account Receivables 0.334.645.052.825.454.5255.526.106.74
Account Receivables (%)
Inventories 89.5597.69147.85149.05124.91156.57173.01191.17211.24233.42
Inventories (%)
Accounts Payable 17.3225.3633.0533.6545.4039.0243.1147.6452.6458.17
Accounts Payable (%)
Capital Expenditure -46.46-53.04-24.44-12.26-10.35-41.01-45.31-50.07-55.32-61.13
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 7.2
Beta 0.869
Diluted Shares Outstanding 32.58
Cost of Debt
Tax Rate 24.68
After-tax Cost of Debt 1.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.800
Total Debt 190.25
Total Equity 234.58
Total Capital 424.82
Debt Weighting 44.78
Equity Weighting 55.22
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 471.45568.10615.62638.78698.58771.92852.95942.491,041.431,150.76
EBITDA 44.5550.1550.905373.5370.0477.3985.5294.49104.41
EBIT 37.2237.5628.8224.4844.3145.3350.0955.3461.1567.57
Tax Rate 34.23%26.76%20.93%24.64%24.68%26.25%26.25%26.25%26.25%26.25%
EBIAT 24.4827.5122.7918.4533.3733.4336.9440.8245.1049.84
Depreciation 7.3312.5922.0828.5229.2324.7127.3130.1733.3436.84
Accounts Receivable --4.31-0.412.23-2.640.93-0.47-0.52-0.58-0.64
Inventories --8.14-50.16-1.2024.15-31.67-16.44-18.16-20.07-22.18
Accounts Payable -8.047.690.5911.76-6.384.104.5355.53
Capital Expenditure -46.46-53.04-24.43-12.26-10.35-41.01-45.31-50.07-55.32-61.13
UFCF -14.66-17.34-22.4536.3385.51-19.986.126.767.478.25
WACC
PV UFCF -19.015.535.826.116.42
SUM PV UFCF 4.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.14
Free cash flow (t + 1) 8.42
Terminal Value 268.14
Present Value of Terminal Value 208.70

Intrinsic Value

Enterprise Value 213.58
Net Debt 113.19
Equity Value 100.39
Shares Outstanding 32.58
Equity Value Per Share 3.08