Discounted Cash Flow (DCF) Analysis Unlevered

GAMCO Investors, Inc. (GBL)

$14.78

-1.32 (-8.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.12 | 14.78 | 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 360.52341.45312.37259.73301.13290.04279.37269.09259.19249.65
Revenue (%)
EBITDA 143.64158.75112.4987.28108.13111.29107.20103.2599.4595.79
EBITDA (%)
EBIT 143.05158.18111.2786.30106.96110.43106.37102.4598.6895.05
EBIT (%)
Depreciation 0.600.561.220.971.170.860.830.800.770.74
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 17.8241.2086.1498.31142.0375.1872.4169.7567.1864.71
Total Cash (%)
Account Receivables 61.5448.2941.0239.5138.3541.9440.3938.9137.4736.10
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 14.930.116.525.426.286.055.835.615.415.21
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 14.78
Beta 1.339
Diluted Shares Outstanding 26.81
Cost of Debt
Tax Rate 29.64
After-tax Cost of Debt 3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.528
Total Debt 57.79
Total Equity 396.24
Total Capital 454.03
Debt Weighting 12.73
Equity Weighting 87.27
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 360.52341.45312.37259.73301.13290.04279.37269.09259.19249.65
EBITDA 143.64158.75112.4987.28108.13111.29107.20103.2599.4595.79
EBIT 143.05158.18111.2786.30106.96110.43106.37102.4598.6895.05
Tax Rate 41.45%24.22%24.61%29.86%29.64%29.96%29.96%29.96%29.96%29.96%
EBIAT 83.76119.8783.8860.5375.2577.3574.5071.7669.1266.58
Depreciation 0.600.561.220.971.170.860.830.800.770.74
Accounts Receivable -13.257.271.511.16-3.591.541.491.431.38
Inventories ----------
Accounts Payable --14.816.41-1.100.86-0.23-0.22-0.21-0.21-0.20
Capital Expenditure ----------
UFCF -----74.3976.6573.8371.1268.50
WACC
PV UFCF 67.8563.7756.0249.2143.23
SUM PV UFCF 280.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.64
Free cash flow (t + 1) 69.87
Terminal Value 914.51
Present Value of Terminal Value 577.22

Intrinsic Value

Enterprise Value 857.31
Net Debt -84.24
Equity Value 941.54
Shares Outstanding 26.81
Equity Value Per Share 35.12