Discounted Cash Flow (DCF) Analysis Unlevered

Donegal Investment Group plc (DQ7A.IR)

17 €

-1.00 (-5.56%)
All numbers are in Millions, Currency in USD
Stock DCF: 225.03 | 17 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 77.0276.1645.2344.9626.0920.5916.2512.8310.127.99
Revenue (%)
EBITDA 3.9521.514.483.414.742.842.241.771.401.10
EBITDA (%)
EBIT 2.7620.483.482.433.622.371.871.471.160.92
EBIT (%)
Depreciation 1.191.030.990.981.120.480.380.300.230.18
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 12.736.9825.7414.725.315.594.413.482.752.17
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories 4.513.842.082.201.421.060.840.660.520.41
Inventories (%)
Accounts Payable 4.895.813.252.040.281.100.870.690.540.43
Accounts Payable (%)
Capital Expenditure 18.321.330.03-3.32-1.950.440.350.280.220.17
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 17
Beta -0.317
Diluted Shares Outstanding 2.83
Cost of Debt
Tax Rate -139.17
After-tax Cost of Debt 2.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity 2.208
Total Debt 1.62
Total Equity 48.08
Total Capital 49.70
Debt Weighting 3.26
Equity Weighting 96.74
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 77.0276.1645.2344.9626.0920.5916.2512.8310.127.99
EBITDA 3.9521.514.483.414.742.842.241.771.401.10
EBIT 2.7620.483.482.433.622.371.871.471.160.92
Tax Rate 4.62%14.53%-61.64%24.76%-139.17%-31.38%-31.38%-31.38%-31.38%-31.38%
EBIAT 2.6417.515.631.838.663.112.451.941.531.21
Depreciation 1.191.030.990.981.120.480.380.300.230.18
Accounts Receivable ----------
Inventories -0.681.75-0.110.780.350.220.180.140.11
Accounts Payable -0.91-2.55-1.21-1.760.82-0.23-0.18-0.14-0.11
Capital Expenditure 18.321.330.03-3.32-1.950.440.350.280.220.17
UFCF 22.1421.465.85-1.836.845.203.172.501.971.56
WACC
PV UFCF 5.093.032.341.811.40
SUM PV UFCF 13.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.23
Free cash flow (t + 1) 1.59
Terminal Value 691.21
Present Value of Terminal Value 619.04

Intrinsic Value

Enterprise Value 632.71
Net Debt -3.69
Equity Value 636.39
Shares Outstanding 2.83
Equity Value Per Share 225.03