Discounted Cash Flow (DCF) Analysis Unlevered

Western Asset High Income Fund II I... (HIX)

$4.78

-0.16 (-3.24%)
All numbers are in Millions, Currency in USD
Stock DCF: -2.06 | 4.78 | overvalue

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 16.2439.13-45.82120.07-40.5017.41-7.483.22-1.380.59
Revenue (%)
EBITDA 20.8346.08-41.25120.84-39.6518.61-83.44-1.480.64
EBITDA (%)
EBIT -----18.61-83.44-1.480.64
EBIT (%)
Depreciation ----------
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 2.345.64-6.6117.31-5.842.51-1.080.46-0.200.09
Total Cash (%)
Account Receivables 21.2623.1229.609.5021.612.78-1.200.51-0.220.10
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 36.4420.6612.5719.2315.257.94-3.411.47-0.630.27
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 4.78
Beta 0.809
Diluted Shares Outstanding 60.67
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 0.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.516
Total Debt 179.37
Total Equity 290.01
Total Capital 469.39
Debt Weighting 38.21
Equity Weighting 61.79
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 16.2439.13-45.82120.07-40.5017.41-7.483.22-1.380.59
EBITDA 20.8346.08-41.25120.84-39.6518.61-83.44-1.480.64
EBIT -----18.61-83.44-1.480.64
Tax Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
EBIAT -----18.61-83.44-1.480.64
Depreciation ----------
Accounts Receivable --1.86-6.4920.10-12.1018.823.98-1.710.74-0.32
Inventories ----------
Accounts Payable --15.79-8.086.66-3.98-7.31-11.364.88-2.100.90
Capital Expenditure ----------
UFCF -----30.13-15.386.61-2.841.22
WACC
PV UFCF 28.70-13.965.72-2.340.96
SUM PV UFCF 19.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.96
Free cash flow (t + 1) 1.25
Terminal Value 42.10
Present Value of Terminal Value 33.05

Intrinsic Value

Enterprise Value 52.13
Net Debt 177.21
Equity Value -125.08
Shares Outstanding 60.67
Equity Value Per Share -2.06