Discounted Cash Flow (DCF) Analysis Unlevered

The Eastern Company (EML)

$21.15

-0.35 (-1.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 86.97 | 21.15 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 204.24234.28251.74279.64310.62345.05383.28425.75472.93525.33583.55
Revenue (%)
EBITDA 17.1524.1224.5226.5029.4432.7036.3340.3544.8249.7955.31
EBITDA (%)
EBIT 12.4318.7918.0619.8422.0424.4827.1930.2133.5537.2741.40
EBIT (%)
Depreciation 4.725.336.456.667.408.229.1310.1511.2712.5213.91
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 22.2813.9318.0322.3824.8627.6230.6834.0837.8542.0546.71
Total Cash (%)
Account Receivables 27.1231.4237.9438.9343.2448.0353.3559.2765.8373.1381.23
Account Receivables (%)
Inventories 47.2752.7754.6062.7969.7477.4786.0695.59106.19117.95131.02
Inventories (%)
Accounts Payable 14.7118.5019.9621.4723.8426.4929.4232.6836.3040.3244.79
Accounts Payable (%)
Capital Expenditure -2.76-5.41-5.44-5.43-6.03-6.70-7.44-8.26-9.18-10.20-11.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 21.15
Beta 0.913
Diluted Shares Outstanding 6.26
Cost of Debt
Tax Rate 50.98
After-tax Cost of Debt -1.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.148
Total Debt 73.98
Total Equity 132.49
Total Capital 206.47
Debt Weighting 35.83
Equity Weighting 64.17
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 204.24234.28251.74279.64310.62345.05383.28425.75472.93525.33583.55
EBITDA 17.1524.1224.5226.5029.4432.7036.3340.3544.8249.7955.31
EBIT 12.4318.7918.0619.8422.0424.4827.1930.2133.5537.2741.40
Tax Rate 55.96%17.53%18.14%30.58%10.29%50.98%30.58%30.58%30.58%30.58%30.58%
EBIAT 5.4815.5014.7913.7719.771218.8820.9723.2925.8728.74
Depreciation 4.725.336.456.667.408.229.1310.1511.2712.5213.91
Accounts Receivable --4.30-6.52-0.99-4.31-4.79-5.32-5.91-6.57-7.30-8.10
Inventories --5.50-1.83-8.19-6.96-7.73-8.58-9.54-10.59-11.77-13.07
Accounts Payable -3.791.461.502.382.642.933.263.624.024.47
Capital Expenditure -2.76-5.41-5.44-5.43-3.10-3.72-7.44-8.26-9.18-10.20-11.33
UFCF 7.439.408.927.3412.253.659.6010.6611.8413.1614.61
WACC
PV UFCF 7.6512.253.508.859.4310.0610.7311.44
SUM PV UFCF 52.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.17
Free cash flow (t + 1) 14.91
Terminal Value 686.94
Present Value of Terminal Value 560.03

Intrinsic Value

Enterprise Value 612.63
Net Debt 67.81
Equity Value 544.82
Shares Outstanding 6.26
Equity Value Per Share 86.97