Discounted Cash Flow (DCF) Analysis Unlevered

Hamilton Beach Brands Holding Compa... (HBB)

$11.72

+0.39 (+3.44%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.50 | 11.72 | undervalue

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 740.75743.18612.84603.71658.39642.52627.04611.92597.17582.78
Revenue (%)
EBITDA 43.5233.349.8061.8331.8134.7433.9033.0832.2931.51
EBITDA (%)
EBIT 37.9128.035.7957.9227.2530.2829.5528.8428.1527.47
EBIT (%)
Depreciation 5.615.3143.914.564.454.354.244.144.04
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 10.916.352.142.421.124.174.073.973.883.79
Total Cash (%)
Account Receivables 114.10112.14113.78144.80119.58117.20114.38111.62108.93106.30
Account Receivables (%)
Inventories 134.74144.69109.62173.96183.38144.20140.73137.33134.02130.79
Inventories (%)
Accounts Payable 152.20135.39111.61152.56131.91131.44128.27125.18122.16119.22
Accounts Payable (%)
Capital Expenditure -7.37-8.08-4.12-3.31-5.44-5.31-5.18-5.05-4.93-4.81
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 11.72
Beta 0.744
Diluted Shares Outstanding 13.90
Cost of Debt
Tax Rate 26.42
After-tax Cost of Debt 3.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.279
Total Debt -
Total Equity 162.93
Total Capital 162.93
Debt Weighting 0.00
Equity Weighting 100.00
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 740.75743.18612.84603.71658.39642.52627.04611.92597.17582.78
EBITDA 43.5233.349.8061.8331.8134.7433.9033.0832.2931.51
EBIT 37.9128.035.7957.9227.2530.2829.5528.8428.1527.47
Tax Rate 50.37%22.28%110.24%-37.13%26.42%34.44%34.44%34.44%34.44%34.44%
EBIAT 18.8121.78-0.5979.4320.0519.8619.3818.9118.4518.01
Depreciation 5.615.3143.914.564.454.354.244.144.04
Accounts Receivable -1.96-1.64-31.0225.222.382.832.762.692.63
Inventories --9.9535.07-64.34-9.4239.183.483.393.313.23
Accounts Payable --16.81-23.7740.95-20.65-0.47-3.17-3.09-3.02-2.94
Capital Expenditure -7.37-8.08-4.12-3.31-5.44-5.31-5.18-5.05-4.93-4.81
UFCF 17.05-5.788.9425.6114.3260.0921.6821.1520.6420.15
WACC
PV UFCF 56.5319.1917.6216.1814.86
SUM PV UFCF 124.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.28
Free cash flow (t + 1) 20.55
Terminal Value 480.14
Present Value of Terminal Value 354.09

Intrinsic Value

Enterprise Value 478.48
Net Debt -1.13
Equity Value 479.60
Shares Outstanding 13.90
Equity Value Per Share 34.50