Discounted Cash Flow (DCF) Analysis Unlevered

FAT Brands Inc. (FAT)

$6.5

+0.26 (+4.17%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,670.00 | 6.5 | undervalue

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	18.37	22.51	18.12	118.88	407.22	1,223.44	3,675.60	11,042.73	33,176.02	99,671.73
Revenue (%)
EBITDA	3.06	6.81	-8.83	2.50	14.49	9.36	28.12	84.47	253.77	762.41
EBITDA (%)
EBIT	2.70	6.02	-10	-6.06	-12.53	-53.64	-161.16	-484.17	-1,454.60	-4,370.11
EBIT (%)
Depreciation	0.36	0.79	1.17	8.57	27.01	63	189.27	568.64	1,708.37	5,132.52
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	0.65	0.02	3.94	56.66	28.67	196.07	589.07	1,769.76	5,316.95	15,973.87
Total Cash (%)
Account Receivables	1.84	4.41	4.42	19.79	23.88	187.18	562.36	1,689.51	5,075.85	15,249.53
Account Receivables (%)
Inventories	-	-	-	-	6.92	20.80	62.51	187.79	564.17	1,694.96
Inventories (%)
Accounts Payable	4.41	7.18	8.62	27.53	18.33	321.07	964.59	2,897.95	8,706.41	26,156.94
Accounts Payable (%)
Capital Expenditure	-0.15	-0.05	-0.46	-10.42	-23.17	-44.05	-132.33	-397.57	-1,194.43	-3,588.46
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 6.5
Beta	1.996
Diluted Shares Outstanding	16.48
Cost of Debt
Tax Rate	-17.52
After-tax Cost of Debt	8.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.115
Total Debt	1,118.68
Total Equity	107.09
Total Capital	1,225.77
Debt Weighting	91.26
Equity Weighting	8.74
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	18.37	22.51	18.12	118.88	407.22	1,223.44	3,675.60	11,042.73	33,176.02	99,671.73
EBITDA	3.06	6.81	-8.83	2.50	14.49	9.36	28.12	84.47	253.77	762.41
EBIT	2.70	6.02	-10	-6.06	-12.53	-53.64	-161.16	-484.17	-1,454.60	-4,370.11
Tax Rate	13.27%	-100.39%	19.89%	10.07%	-17.52%	-14.94%	-14.94%	-14.94%	-14.94%	-14.94%
EBIAT	2.34	12.07	-8.01	-5.45	-14.72	-61.65	-185.23	-556.49	-1,671.88	-5,022.88
Depreciation	0.36	0.79	1.17	8.57	27.01	63	189.27	568.64	1,708.37	5,132.52
Accounts Receivable	-	-2.56	-0.01	-15.37	-4.09	-163.30	-375.18	-1,127.15	-3,386.34	-10,173.68
Inventories	-	-	-	-	-	-13.88	-41.70	-125.28	-376.38	-1,130.78
Accounts Payable	-	2.77	1.44	18.90	-9.20	302.74	643.52	1,933.36	5,808.46	17,450.53
Capital Expenditure	-0.15	-0.04	-0.46	-10.42	-23.17	-44.05	-132.33	-397.57	-1,194.43	-3,588.46
UFCF	2.55	13.01	-5.87	-3.77	-24.17	82.86	98.36	295.51	887.80	2,667.23
WACC
PV UFCF						76.10	82.97	228.94	631.71	1,743.09
SUM PV UFCF										2,762.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.88
Free cash flow (t + 1)	2,720.58
Terminal Value	39,543.25
Present Value of Terminal Value	25,842.34

Intrinsic Value

Enterprise Value	28,605.15
Net Debt	1,090.01
Equity Value	27,515.14
Shares Outstanding	16.48
Equity Value Per Share	1,670.00