Discounted Cash Flow (DCF) Analysis Unlevered

GTT Communications, Inc. (GTT)

$2.36

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 205.92 | 2.36 | undervalue

Operating Data

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 369.25521.69827.901,490.801,727.802,574.193,835.215,713.958,513.0312,683.29
Revenue (%)
EBITDA 45.82101.40149.60109.40340.80396.32590.47879.721,310.671,952.72
EBITDA (%)
EBIT -0.8938.6217-1029239.6459.0587.98131.08195.29
EBIT (%)
Depreciation 46.7162.79132.60211.40248.80356.69531.42791.741,179.591,757.44
Depreciation (%)

Balance Sheet Data

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Total Cash 14.6329.75101.2056.6042.10144.78215.70321.37478.79713.34
Total Cash (%)
Account Receivables 60.4576.29102.80177172.80336.11500.76746.071,111.551,656.06
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 22.7311.3322.5089.2069.40108.35161.42240.50358.31533.83
Accounts Payable (%)
Capital Expenditure -14.07-44.19-58.40-77.80-102.40-156.92-233.79-348.32-518.96-773.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.36
Beta 1.445
Diluted Shares Outstanding 56.27
Cost of Debt
Tax Rate -3.12
After-tax Cost of Debt 5.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.370
Total Debt 3,302.30
Total Equity 132.79
Total Capital 3,435.09
Debt Weighting 96.13
Equity Weighting 3.87
Wacc

Build Up Free Cash

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 369.25521.69827.901,490.801,727.802,574.193,835.215,713.958,513.0312,683.29
EBITDA 45.82101.40149.60109.40340.80396.32590.47879.721,310.671,952.72
EBIT -0.8938.6217-1029239.6459.0587.98131.08195.29
Tax Rate 230.19%42.75%-31.92%2.21%-3.12%48.02%48.02%48.02%48.02%48.02%
EBIAT 1.1522.1122.43-99.7594.8720.6030.6945.7368.13101.50
Depreciation 46.7162.79132.60211.40248.80356.69531.42791.741,179.591,757.44
Accounts Receivable --15.85-26.51-74.204.20-163.31-164.65-245.31-365.48-544.51
Inventories ----------
Accounts Payable --11.3911.1766.70-19.8038.9553.0879.08117.81175.52
Capital Expenditure -14.07-44.19-58.40-77.80-102.40-156.92-233.79-348.32-518.96-773.18
UFCF 33.7913.4781.2826.35225.6796216.74322.91481.10716.77
WACC
PV UFCF 90.51192.64270.59380.07533.85
SUM PV UFCF 1,467.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.07
Free cash flow (t + 1) 731.11
Terminal Value 17,963.39
Present Value of Terminal Value 13,379.05

Intrinsic Value

Enterprise Value 14,846.71
Net Debt 3,260.50
Equity Value 11,586.21
Shares Outstanding 56.27
Equity Value Per Share 205.92