Discounted Cash Flow (DCF) Analysis Unlevered

GAMCO Investors, Inc. (GBL)

$15.41

-1.23 (-7.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.44 | 15.41 | 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 143.64158.75112.4987.28106.96111.07106.98103.0499.2595.60
EBITDA (%)
EBIT 143.05158.18111.2786.30106.14110.27106.22102.3198.5494.92
EBIT (%)
Depreciation 0.600.561.220.970.820.790.770.740.710.68
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 17.8241.2086.1498.31047.8246.0644.3742.7341.16
Total Cash (%)
Account Receivables 61.5448.2941.0239.5135.2741.3439.8238.3636.9435.59
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 $ 15.41
Beta 1.321
Diluted Shares Outstanding 26.81
Cost of Debt
Tax Rate 29.64
After-tax Cost of Debt 4.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.933
Total Debt 50.99
Total Equity 413.13
Total Capital 464.12
Debt Weighting 10.99
Equity Weighting 89.01
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 143.64158.75112.4987.28106.96111.07106.98103.0499.2595.60
EBIT 143.05158.18111.2786.30106.14110.27106.22102.3198.5494.92
Tax Rate 41.45%24.22%24.61%29.86%29.64%29.96%29.96%29.96%29.96%29.96%
EBIAT 83.76119.8783.8860.5374.6777.2474.4071.6669.0266.48
Depreciation 0.600.561.220.970.820.790.770.740.710.68
Accounts Receivable -13.257.271.514.24-6.071.521.471.411.36
Inventories ----------
Accounts Payable --14.816.41-1.100.86-0.23-0.22-0.21-0.21-0.20
Capital Expenditure ----------
UFCF -----71.7376.4673.6570.9468.33
WACC
PV UFCF 65.6464.0356.4349.7443.84
SUM PV UFCF 279.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.28
Free cash flow (t + 1) 69.69
Terminal Value 957.31
Present Value of Terminal Value 614.26

Intrinsic Value

Enterprise Value 893.93
Net Debt 50.99
Equity Value 842.94
Shares Outstanding 26.81
Equity Value Per Share 31.44