Discounted Cash Flow (DCF) Analysis Unlevered

FARO Technologies, Inc. (FARO)

$27.01

-0.80 (-2.88%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.68 | 27.01 | overvalue

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 360.92403.63381.77303.77337.81335.44333.09330.76328.44326.13
Revenue (%)
EBITDA 22.4223.36-41.72-16.534.89-1.96-1.95-1.93-1.92-1.91
EBITDA (%)
EBIT 5.835.04-60.23-30.77-8.51-17.15-17.03-16.91-16.79-16.67
EBIT (%)
Depreciation 16.5918.3118.5214.2413.4015.1915.0814.9714.8714.76
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 151.96133.58158.50185.63121.99143.53142.52141.52140.53139.54
Total Cash (%)
Account Receivables 72.1188.9376.1664.6278.5271.4370.9370.4469.9469.45
Account Receivables (%)
Inventories 53.7965.4458.5547.3953.1452.1951.8251.4651.1050.74
Inventories (%)
Accounts Payable 11.5720.0913.7214.1214.2013.8413.7413.6513.5513.46
Accounts Payable (%)
Capital Expenditure -11.35-12.92-8.79-6.07-11.94-9.51-9.45-9.38-9.32-9.25
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 27.01
Beta 1.416
Diluted Shares Outstanding 18.19
Cost of Debt
Tax Rate -366.81
After-tax Cost of Debt 0.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.645
Total Debt 24.39
Total Equity 491.26
Total Capital 515.64
Debt Weighting 4.73
Equity Weighting 95.27
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 360.92403.63381.77303.77337.81335.44333.09330.76328.44326.13
EBITDA 22.4223.36-41.72-16.534.89-1.96-1.95-1.93-1.92-1.91
EBIT 5.835.04-60.23-30.77-8.51-17.15-17.03-16.91-16.79-16.67
Tax Rate 349.12%-8.16%-1.86%102.04%-366.81%14.87%14.87%14.87%14.87%14.87%
EBIAT -14.535.46-61.350.63-39.71-14.60-14.50-14.40-14.29-14.19
Depreciation 16.5918.3118.5214.2413.4015.1915.0814.9714.8714.76
Accounts Receivable --16.8212.7711.55-13.917.090.500.500.490.49
Inventories --11.666.8911.16-5.750.960.370.360.360.36
Accounts Payable -8.52-6.380.400.08-0.36-0.10-0.10-0.10-0.10
Capital Expenditure -11.35-12.92-8.79-6.07-11.94-9.51-9.45-9.38-9.32-9.25
UFCF -9.28-9.11-38.3531.91-57.83-1.24-8.09-8.04-7.98-7.93
WACC
PV UFCF -1.12-6.67-6.01-5.42-4.89
SUM PV UFCF -24.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.15
Free cash flow (t + 1) -8.08
Terminal Value -99.19
Present Value of Terminal Value -61.17

Intrinsic Value

Enterprise Value -85.29
Net Debt -97.60
Equity Value 12.31
Shares Outstanding 18.19
Equity Value Per Share 0.68