Discounted Cash Flow (DCF) Analysis Unlevered

Hooker Furnishings Corporation (HOFT)

$14.21

-0.21 (-1.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 38.56 | 14.21 | 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 620.63683.50610.82540.08593.61590.39587.18583.99580.82577.66
Revenue (%)
EBITDA 53.6760.4930.26-7.2523.0329.5129.3529.1929.0328.87
EBITDA (%)
EBIT 47.0253.0423.16-14.0315.2222.5522.4222.3022.1822.06
EBIT (%)
Depreciation 6.657.447.106.787.816.966.926.886.856.81
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 30.9211.4336.0365.8469.3743.0142.7842.5542.3242.09
Total Cash (%)
Account Receivables 92.80112.5688.4083.2978.0987.9387.4586.9886.5186.04
Account Receivables (%)
Inventories 84.46105.2092.8170.1675.0282.458281.5581.1180.67
Inventories (%)
Accounts Payable 32.6940.8425.4932.2130.9231.3931.2231.0530.8830.72
Accounts Payable (%)
Capital Expenditure -3.17-5.21-5.13-1.21-6.69-4.09-4.07-4.05-4.02-4
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 14.21
Beta 0.891
Diluted Shares Outstanding 11.82
Cost of Debt
Tax Rate 22.43
After-tax Cost of Debt 0.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.902
Total Debt 54.04
Total Equity 167.99
Total Capital 222.03
Debt Weighting 24.34
Equity Weighting 75.66
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 620.63683.50610.82540.08593.61590.39587.18583.99580.82577.66
EBITDA 53.6760.4930.26-7.2523.0329.5129.3529.1929.0328.87
EBIT 47.0253.0423.16-14.0315.2222.5522.4222.3022.1822.06
Tax Rate 38.28%22.71%22.09%28.43%22.43%26.79%26.79%26.79%26.79%26.79%
EBIAT 29.024118.05-10.0411.8016.5116.4216.3316.2416.15
Depreciation 6.657.447.106.787.816.966.926.886.856.81
Accounts Receivable --19.7524.155.115.20-9.840.480.480.470.47
Inventories --20.7512.3922.65-4.86-7.420.450.450.440.44
Accounts Payable -8.15-15.356.72-1.300.48-0.17-0.17-0.17-0.17
Capital Expenditure -3.17-5.21-5.13-1.21-6.69-4.09-4.07-4.05-4.02-4
UFCF 32.5010.8841.2230.0211.972.5920.0319.9219.8119.70
WACC
PV UFCF 2.4417.8216.7115.6814.71
SUM PV UFCF 67.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.02
Free cash flow (t + 1) 20.09
Terminal Value 499.87
Present Value of Terminal Value 373.18

Intrinsic Value

Enterprise Value 440.53
Net Debt -15.32
Equity Value 455.86
Shares Outstanding 11.82
Equity Value Per Share 38.56