Discounted Cash Flow (DCF) Analysis Unlevered

Great Elm Capital Corp. (GECC)

$8.04

-0.63 (-7.27%)
All numbers are in Millions, Currency in USD
Stock DCF: -142.63 | 8.04 | 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 0.67-5.35-4.77-28.87-6.591.38-0.290.06-0.010
Revenue (%)
EBITDA -0.59-3.180.30-22.8113.12-0.430.09-0.020-0
EBITDA (%)
EBIT -0.59-3.180.30-22.810.200.92-0.190.04-0.010
EBIT (%)
Depreciation ---012.92-1.350.28-0.060.01-0
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 2.9282.254.6152.58173.34-11.072.32-0.490.10-0.02
Total Cash (%)
Account Receivables 5.9414.7033.264.271.31-0.270.06-0.010
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 69.5387.9074.4477.75203.6010.63-2.230.47-0.100.02
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.04
Beta 1.490
Diluted Shares Outstanding 2.22
Cost of Debt
Tax Rate -0.47
After-tax Cost of Debt 7.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.998
Total Debt 142
Total Equity 17.83
Total Capital 159.83
Debt Weighting 88.84
Equity Weighting 11.16
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 0.67-5.35-4.77-28.87-6.591.38-0.290.06-0.010
EBITDA -0.59-3.180.30-22.8113.12-0.430.09-0.020-0
EBIT -0.59-3.180.30-22.810.200.92-0.190.04-0.010
Tax Rate -4.71%-2.04%-2.85%-0.05%-0.47%-2.03%-2.03%-2.03%-2.03%-2.03%
EBIAT -0.62-3.240.31-22.830.200.94-0.200.04-0.010
Depreciation ---012.92-1.350.28-0.060.01-0
Accounts Receivable --8.7711.71-0.26-1.012.961.59-0.330.07-0.01
Inventories ----------
Accounts Payable -18.36-13.463.31125.85-192.98-12.852.69-0.560.12
Capital Expenditure ----------
UFCF ------190.43-11.182.34-0.490.10
WACC
PV UFCF -176.73-9.631.87-0.360.07
SUM PV UFCF -184.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.75
Free cash flow (t + 1) 0.10
Terminal Value 1.82
Present Value of Terminal Value 1.25

Intrinsic Value

Enterprise Value -183.53
Net Debt 132.87
Equity Value -316.40
Shares Outstanding 2.22
Equity Value Per Share -142.63