Discounted Cash Flow (DCF) Analysis Unlevered

Gannett Co., Inc. (GCI)

$1.92

-0.07 (-3.52%)
All numbers are in Millions, Currency in USD
Stock DCF: -8.76 | 1.92 | 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 1,3421,526.021,867.913,405.673,208.084,111.485,269.266,753.088,654.7411,091.90
Revenue (%)
EBITDA 104.44140.97-30.29-211.60252.99140.38179.90230.57295.49378.70
EBITDA (%)
EBIT 30.0456.18-142.18-475.4249.04-116.13-148.83-190.74-244.45-313.29
EBIT (%)
Depreciation 74.3984.79111.88263.82203.96256.50328.73421.31539.95691.99
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 43.0648.65156.04170.73130.76196.03251.23321.97412.64528.84
Total Cash (%)
Account Receivables 151.69174.27438.52314.30328.73540.05692.13887.031,136.821,456.95
Account Receivables (%)
Inventories 18.6525.0255.0935.0737.6667.2986.24110.52141.64181.53
Inventories (%)
Accounts Payable 15.7516.61147131.80112.30143.92184.45236.39302.95388.26
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 $ 1.92
Beta 2.364
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 14.855
Total Debt 1,487.22
Total Equity 459.75
Total Capital 1,946.97
Debt Weighting 76.39
Equity Weighting 23.61
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 1,3421,526.021,867.913,405.673,208.084,111.485,269.266,753.088,654.7411,091.90
EBITDA 104.44140.97-30.29-211.60252.99140.38179.90230.57295.49378.70
EBIT 30.0456.18-142.18-475.4249.04-116.13-148.83-190.74-244.45-313.29
Tax Rate -110.83%9.11%42.16%5.01%-53.50%-21.61%-21.61%-21.61%-21.61%-21.61%
EBIAT 63.3451.06-82.24-451.5975.27-141.23-181-231.96-297.28-381
Depreciation 74.3984.79111.88263.82203.96256.50328.73421.31539.95691.99
Accounts Receivable --22.58-264.25124.22-14.43-211.32-152.08-194.90-249.79-320.13
Inventories --6.37-30.0720.02-2.59-29.63-18.95-24.28-31.12-39.89
Accounts Payable -0.86130.38-15.20-19.5031.6240.5351.9466.5785.31
Capital Expenditure -11.09-11.64-13.98-36.98-39.56-38.29-49.07-62.89-80.60-103.29
UFCF 126.6496.13-148.27-95.72203.15-132.33-31.83-40.79-52.28-67
WACC
PV UFCF -119.78-26.08-30.25-35.09-40.71
SUM PV UFCF -251.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.48
Free cash flow (t + 1) -68.34
Terminal Value -805.90
Present Value of Terminal Value -489.62

Intrinsic Value

Enterprise Value -741.52
Net Debt 1,356.47
Equity Value -2,097.99
Shares Outstanding 239.45
Equity Value Per Share -8.76