Discounted Cash Flow (DCF) Analysis Unlevered
HireQuest, Inc. (HQI)
$24.13
-0.07 (-0.29%)
All numbers are in Millions, Currency in USD
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 | 97.39 | 15.88 | 13.81 | 22.76 | 30.95 | 31.27 | 31.59 | 31.91 | 32.24 | 32.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 1.51 | 4.15 | 6.28 | 14.21 | 16.28 | 11.77 | 11.89 | 12.01 | 12.13 | 12.26 |
| EBITDA (%) | ||||||||||
| EBIT | 1.18 | 3.75 | 6.15 | 12.65 | 14.24 | 10.69 | 10.80 | 10.91 | 11.02 | 11.13 |
| EBIT (%) | ||||||||||
| Depreciation | 0.32 | 0.40 | 0.13 | 1.56 | 2.04 | 1.08 | 1.09 | 1.10 | 1.11 | 1.12 |
| 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 | 7.93 | 4.19 | 13.67 | 1.26 | 3.05 | 9.31 | 9.40 | 9.50 | 9.60 | 9.70 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 9.04 | 31.62 | 23.52 | 39.72 | 48.40 | 44.38 | 44.84 | 45.30 | 45.76 | 46.23 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 0.62 | 0.25 | 0.46 | 1.13 | 0.45 | 0.75 | 0.75 | 0.76 | 0.77 | 0.78 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.16 | -0.51 | -1.76 | -1.98 | -0.10 | -1.57 | -1.59 | -1.60 | -1.62 | -1.64 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 24.13 |
|---|---|
| Beta | 1.063 |
| Diluted Shares Outstanding | 13.72 |
| Cost of Debt | |
| Tax Rate | 13.66 |
| After-tax Cost of Debt | 2.53% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.711 |
| Total Debt | 12.54 |
| Total Equity | 331.09 |
| Total Capital | 343.63 |
| Debt Weighting | 3.65 |
| Equity Weighting | 96.35 |
| 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 | 97.39 | 15.88 | 13.81 | 22.76 | 30.95 | 31.27 | 31.59 | 31.91 | 32.24 | 32.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 1.51 | 4.15 | 6.28 | 14.21 | 16.28 | 11.77 | 11.89 | 12.01 | 12.13 | 12.26 |
| EBIT | 1.18 | 3.75 | 6.15 | 12.65 | 14.24 | 10.69 | 10.80 | 10.91 | 11.02 | 11.13 |
| Tax Rate | 17.39% | 109.75% | 12.15% | 5.11% | 13.66% | 31.61% | 31.61% | 31.61% | 31.61% | 31.61% |
| EBIAT | 0.98 | -0.37 | 5.40 | 12 | 12.29 | 7.31 | 7.39 | 7.46 | 7.54 | 7.61 |
| Depreciation | 0.32 | 0.40 | 0.13 | 1.56 | 2.04 | 1.08 | 1.09 | 1.10 | 1.11 | 1.12 |
| Accounts Receivable | - | -22.58 | 8.10 | -16.20 | -8.68 | 4.02 | -0.45 | -0.46 | -0.46 | -0.47 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -0.36 | 0.20 | 0.67 | -0.68 | 0.30 | 0.01 | 0.01 | 0.01 | 0.01 |
| Capital Expenditure | -0.16 | -0.51 | -1.76 | -1.98 | -0.10 | -1.57 | -1.59 | -1.60 | -1.62 | -1.64 |
| UFCF | 1.14 | -23.42 | 12.07 | -3.94 | 4.87 | 11.14 | 6.44 | 6.51 | 6.57 | 6.64 |
| WACC | ||||||||||
| PV UFCF | 10.26 | 5.47 | 5.10 | 4.74 | 4.42 | |||||
| SUM PV UFCF | 29.99 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.49 |
| Free cash flow (t + 1) | 6.77 |
| Terminal Value | 104.36 |
| Present Value of Terminal Value | 69.43 |
Intrinsic Value
| Enterprise Value | 99.43 |
|---|---|
| Net Debt | 9.49 |
| Equity Value | 89.94 |
| Shares Outstanding | 13.72 |
| Equity Value Per Share | 6.55 |