Discounted Cash Flow (DCF) Analysis Unlevered
Esquire Financial Holdings, Inc. (ESQ)
$39.8
+1.47 (+3.84%)
All numbers are in Millions, Currency in USD
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 | 25.37 | 35.59 | 45.92 | 52.09 | 64.73 | 82.04 | 103.99 | 131.80 | 167.06 | 211.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 7.98 | 13.56 | 22.57 | 19.98 | 25.77 | 32.31 | 40.95 | 51.90 | 65.78 | 83.38 |
| EBITDA (%) | ||||||||||
| EBIT | 7.57 | 13.14 | 21.69 | 18.36 | 23.54 | 30.45 | 38.59 | 48.92 | 62 | 78.59 |
| EBIT (%) | ||||||||||
| Depreciation | 0.41 | 0.42 | 0.89 | 1.62 | 2.24 | 1.86 | 2.35 | 2.98 | 3.78 | 4.79 |
| 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 | 171.83 | 176.26 | 208.22 | 182.84 | 297.54 | 399.80 | 506.75 | 642.30 | 814.11 | 1,031.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 2.84 | 3.85 | 3.24 | 4.53 | 4.20 | 7.26 | 9.20 | 11.66 | 14.78 | 18.74 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.19 | -0.57 | -0.65 | -3.14 | -2.94 | -2.35 | -2.98 | -3.78 | -4.79 | -6.07 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 39.8 |
|---|---|
| Beta | 0.902 |
| Diluted Shares Outstanding | 7.45 |
| Cost of Debt | |
| Tax Rate | 21.06 |
| After-tax Cost of Debt | 3.95% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.108 |
| Total Debt | - |
| Total Equity | 296.65 |
| Total Capital | 296.65 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| 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 | 25.37 | 35.59 | 45.92 | 52.09 | 64.73 | 82.04 | 103.99 | 131.80 | 167.06 | 211.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 7.98 | 13.56 | 22.57 | 19.98 | 25.77 | 32.31 | 40.95 | 51.90 | 65.78 | 83.38 |
| EBIT | 7.57 | 13.14 | 21.69 | 18.36 | 23.54 | 30.45 | 38.59 | 48.92 | 62 | 78.59 |
| Tax Rate | 48.19% | 26.75% | 26.10% | 26.50% | 21.06% | 29.72% | 29.72% | 29.72% | 29.72% | 29.72% |
| EBIAT | 3.92 | 9.62 | 16.03 | 13.49 | 18.58 | 21.40 | 27.12 | 34.38 | 43.58 | 55.23 |
| Depreciation | 0.41 | 0.42 | 0.89 | 1.62 | 2.24 | 1.86 | 2.35 | 2.98 | 3.78 | 4.79 |
| Accounts Receivable | - | -1.02 | 0.61 | -1.29 | 0.33 | -3.06 | -1.94 | -2.46 | -3.12 | -3.95 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -0.19 | -0.57 | -0.65 | -3.14 | -2.94 | -2.35 | -2.98 | -3.78 | -4.79 | -6.07 |
| UFCF | 4.14 | 8.45 | 16.88 | 10.69 | 18.20 | 17.84 | 24.55 | 31.12 | 39.45 | 50 |
| WACC | ||||||||||
| PV UFCF | 16.66 | 21.40 | 25.33 | 29.97 | 35.47 | |||||
| SUM PV UFCF | 128.82 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.11 |
| Free cash flow (t + 1) | 51 |
| Terminal Value | 998.02 |
| Present Value of Terminal Value | 707.93 |
Intrinsic Value
| Enterprise Value | 836.75 |
|---|---|
| Net Debt | -149.16 |
| Equity Value | 985.91 |
| Shares Outstanding | 7.45 |
| Equity Value Per Share | 132.27 |