Discounted Cash Flow (DCF) Analysis Unlevered

Gannett Co., Inc. (GCI)

$2.27

+0.04 (+1.79%)

All numbers are in Millions, Currency in USD

Stock DCF: -8.72 | 2.27 | 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	1,342	1,526.02	1,867.91	3,405.67	3,208.08	4,111.48	5,269.26	6,753.08	8,654.74	11,091.90
Revenue (%)
EBITDA	104.44	140.97	-30.29	-211.60	252.99	140.38	179.90	230.57	295.49	378.70
EBITDA (%)
EBIT	30.04	56.18	-142.18	-475.42	49.04	-116.13	-148.83	-190.74	-244.45	-313.29
EBIT (%)
Depreciation	74.39	84.79	111.88	263.82	203.96	256.50	328.73	421.31	539.95	691.99
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	43.06	48.65	156.04	170.73	130.76	196.03	251.23	321.97	412.64	528.84
Total Cash (%)
Account Receivables	151.69	174.27	438.52	314.30	328.73	540.05	692.13	887.03	1,136.82	1,456.95
Account Receivables (%)
Inventories	18.65	25.02	55.09	35.07	37.66	67.29	86.24	110.52	141.64	181.53
Inventories (%)
Accounts Payable	15.75	16.61	147	131.80	112.30	143.92	184.45	236.39	302.95	388.26
Accounts Payable (%)
Capital Expenditure	-11.09	-11.64	-13.98	-36.97	-39.56	-38.29	-49.07	-62.89	-80.60	-103.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2.27
Beta	2.319
Diluted Shares Outstanding	239.45
Cost of Debt
Tax Rate	-53.50
After-tax Cost of Debt	9.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.638
Total Debt	1,487.22
Total Equity	543.56
Total Capital	2,030.78
Debt Weighting	73.23
Equity Weighting	26.77
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	1,342	1,526.02	1,867.91	3,405.67	3,208.08	4,111.48	5,269.26	6,753.08	8,654.74	11,091.90
EBITDA	104.44	140.97	-30.29	-211.60	252.99	140.38	179.90	230.57	295.49	378.70
EBIT	30.04	56.18	-142.18	-475.42	49.04	-116.13	-148.83	-190.74	-244.45	-313.29
Tax Rate	-110.83%	9.11%	42.16%	5.01%	-53.50%	-21.61%	-21.61%	-21.61%	-21.61%	-21.61%
EBIAT	63.34	51.06	-82.24	-451.59	75.27	-141.23	-181	-231.96	-297.28	-381
Depreciation	74.39	84.79	111.88	263.82	203.96	256.50	328.73	421.31	539.95	691.99
Accounts Receivable	-	-22.58	-264.25	124.22	-14.43	-211.32	-152.08	-194.90	-249.79	-320.13
Inventories	-	-6.37	-30.07	20.02	-2.59	-29.63	-18.95	-24.28	-31.12	-39.89
Accounts Payable	-	0.86	130.38	-15.20	-19.50	31.62	40.53	51.94	66.57	85.31
Capital Expenditure	-11.09	-11.64	-13.98	-36.98	-39.56	-38.29	-49.07	-62.89	-80.60	-103.29
UFCF	126.64	96.13	-148.27	-95.72	203.15	-132.33	-31.83	-40.79	-52.28	-67
WACC
PV UFCF						-119.65	-26.02	-30.15	-34.94	-40.49
SUM PV UFCF										-251.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.60
Free cash flow (t + 1)	-68.34
Terminal Value	-794.65
Present Value of Terminal Value	-480.18

Intrinsic Value

Enterprise Value	-731.42
Net Debt	1,356.47
Equity Value	-2,087.89
Shares Outstanding	239.45
Equity Value Per Share	-8.72