Discounted Cash Flow (DCF) Analysis Unlevered

Hamilton Beach Brands Holding Compa... (HBB)

$18.87

-0.13 (-0.68%)
All numbers are in Millions, Currency in USD
Stock DCF: 21.91 | 18.87 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 743.18612.84603.71658.39640.95620.73601.14582.18563.81546.02
Revenue (%)
EBITDA 32.6941.3739.6436.7241.9037.0335.8634.7333.6432.58
EBITDA (%)
EBIT 27.3837.3735.7331.8137.0232.6631.6330.6329.6628.73
EBIT (%)
Depreciation 5.3143.914.914.884.374.244.103.973.85
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 6.352.142.421.120.932.382.312.242.162.10
Total Cash (%)
Account Receivables 112.14113.78144.80119.58115.14116.40112.73109.18105.73102.40
Account Receivables (%)
Inventories 144.69109.62173.96183.38156.04146.95142.31137.82133.48129.27
Inventories (%)
Accounts Payable 135.39111.61152.56131.9161.76113.43109.85106.39103.0399.78
Accounts Payable (%)
Capital Expenditure -8.08-4.12-3.31-11.84-2.28-5.54-5.37-5.20-5.03-4.87
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 18.87
Beta 0.853
Diluted Shares Outstanding 14
Cost of Debt
Tax Rate 22.09
After-tax Cost of Debt 3.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.325
Total Debt 163.57
Total Equity 264.10
Total Capital 427.68
Debt Weighting 38.25
Equity Weighting 61.75
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 743.18612.84603.71658.39640.95620.73601.14582.18563.81546.02
EBITDA 32.6941.3739.6436.7241.9037.0335.8634.7333.6432.58
EBIT 27.3837.3735.7331.8137.0232.6631.6330.6329.6628.73
Tax Rate 22.28%27.08%28.65%26.42%22.09%25.30%25.30%25.30%25.30%25.30%
EBIAT 21.2827.2525.4923.4128.8424.3923.6222.8822.1621.46
Depreciation 5.3143.914.914.884.374.244.103.973.85
Accounts Receivable --1.64-31.0225.224.44-1.273.673.563.443.34
Inventories -35.07-64.34-9.4227.349.094.644.494.354.21
Accounts Payable --23.7740.95-20.65-70.1551.67-3.58-3.47-3.36-3.25
Capital Expenditure -8.08-4.12-3.31-11.84-2.28-5.54-5.37-5.20-5.03-4.87
UFCF 18.5136.78-28.3211.62-6.9282.7227.2226.3725.5324.73
WACC
PV UFCF 77.7324.0421.8819.9118.12
SUM PV UFCF 161.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.42
Free cash flow (t + 1) 24.85
Terminal Value 419.80
Present Value of Terminal Value 307.56

Intrinsic Value

Enterprise Value 469.23
Net Debt 162.64
Equity Value 306.59
Shares Outstanding 14
Equity Value Per Share 21.91