Discounted Cash Flow (DCF) Analysis Unlevered

Hennessy Advisors, Inc. (HNNA)

$8.625

+0.01 (+0.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.61 | 8.625 | 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 52.9554.5942.7233.3932.7629.2926.1923.4120.9318.71
Revenue (%)
EBITDA 24.5824.8516.5811.6511.1111.6910.459.348.357.47
EBITDA (%)
EBIT 24.3624.6216.3611.4110.8811.5310.319.218.247.36
EBIT (%)
Depreciation 0.220.230.220.240.230.160.150.130.120.10
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 15.7125.4024.709.9615.8512.4311.119.948.887.94
Total Cash (%)
Account Receivables 4.914.673.682.783.072.592.312.071.851.65
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -0.18-0.36-0.20-0.17-0.25-0.16-0.14-0.13-0.11-0.10
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.625
Beta 0.836
Diluted Shares Outstanding 7.41
Cost of Debt
Tax Rate 27.38
After-tax Cost of Debt 3.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.639
Total Debt 1
Total Equity 63.90
Total Capital 64.91
Debt Weighting 1.55
Equity Weighting 98.45
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 52.9554.5942.7233.3932.7629.2926.1923.4120.9318.71
EBITDA 24.5824.8516.5811.6511.1111.6910.459.348.357.47
EBIT 24.3624.6216.3611.4110.8811.5310.319.218.247.36
Tax Rate 35.73%11.88%27.78%28.46%27.38%26.25%26.25%26.25%26.25%26.25%
EBIAT 15.6521.7011.818.167.908.507.606.806.085.43
Depreciation 0.220.230.220.240.230.160.150.130.120.10
Accounts Receivable -0.240.990.90-0.290.490.270.250.220.20
Inventories ----------
Accounts Payable ----------
Capital Expenditure -0.18-0.36-0.20-0.17-0.25-0.16-0.14-0.13-0.11-0.10
UFCF 15.7021.8012.829.137.598.997.887.046.305.63
WACC
PV UFCF 8.366.815.664.703.91
SUM PV UFCF 29.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.58
Free cash flow (t + 1) 5.74
Terminal Value 102.90
Present Value of Terminal Value 71.41

Intrinsic Value

Enterprise Value 100.83
Net Debt -14.83
Equity Value 115.66
Shares Outstanding 7.41
Equity Value Per Share 15.61