Discounted Cash Flow (DCF) Analysis Unlevered
Harrow Health, Inc. (HROW)
$20.98
-0.48 (-2.24%)
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 | 41.37 | 51.16 | 48.87 | 72.48 | 88.59 | 108.47 | 132.80 | 162.59 | 199.06 | 243.72 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 16.47 | 2.83 | -0.61 | -20.91 | -3.10 | 2.55 | 3.12 | 3.81 | 4.67 | 5.72 |
| EBITDA (%) | ||||||||||
| EBIT | 14.62 | 0.17 | -3.35 | -23.31 | -6.77 | -2.38 | -2.92 | -3.57 | -4.37 | -5.35 |
| EBIT (%) | ||||||||||
| Depreciation | 1.84 | 2.66 | 2.74 | 2.40 | 3.66 | 4.93 | 6.03 | 7.39 | 9.04 | 11.07 |
| 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 | 28.06 | 29.95 | 32.56 | 50.67 | 101.86 | 81.97 | 100.36 | 122.87 | 150.43 | 184.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1.96 | 2.73 | 2.66 | 4.52 | 6.25 | 6.25 | 7.65 | 9.37 | 11.47 | 14.05 |
| Account Receivables (%) | ||||||||||
| Inventories | 1.83 | 3.30 | 3.96 | 4.22 | 6.54 | 6.98 | 8.55 | 10.47 | 12.82 | 15.69 |
| Inventories (%) | ||||||||||
| Accounts Payable | 6.25 | 7.41 | 3.93 | 5.17 | 13.77 | 13.08 | 16.02 | 19.61 | 24.01 | 29.40 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -2.20 | -1.84 | -0.99 | -28.51 | -2.60 | -11.55 | -14.14 | -17.31 | -21.19 | -25.94 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 20.98 |
|---|---|
| Beta | 0.178 |
| Diluted Shares Outstanding | 27.46 |
| Cost of Debt | |
| Tax Rate | -0.54 |
| After-tax Cost of Debt | 6.45% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.623 |
| Total Debt | 112.23 |
| Total Equity | 576.13 |
| Total Capital | 688.36 |
| Debt Weighting | 16.30 |
| Equity Weighting | 83.70 |
| 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 | 41.37 | 51.16 | 48.87 | 72.48 | 88.59 | 108.47 | 132.80 | 162.59 | 199.06 | 243.72 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 16.47 | 2.83 | -0.61 | -20.91 | -3.10 | 2.55 | 3.12 | 3.81 | 4.67 | 5.72 |
| EBIT | 14.62 | 0.17 | -3.35 | -23.31 | -6.77 | -2.38 | -2.92 | -3.57 | -4.37 | -5.35 |
| Tax Rate | 0.00% | 234.40% | 1.70% | -0.74% | -0.54% | 46.96% | 46.96% | 46.96% | 46.96% | 46.96% |
| EBIAT | 14.62 | -0.23 | -3.30 | -23.48 | -6.80 | -1.26 | -1.55 | -1.89 | -2.32 | -2.84 |
| Depreciation | 1.84 | 2.66 | 2.74 | 2.40 | 3.66 | 4.93 | 6.03 | 7.39 | 9.04 | 11.07 |
| Accounts Receivable | - | -0.77 | 0.07 | -1.86 | -1.73 | -0 | -1.40 | -1.72 | -2.10 | -2.57 |
| Inventories | - | -1.47 | -0.66 | -0.26 | -2.32 | -0.44 | -1.57 | -1.92 | -2.35 | -2.88 |
| Accounts Payable | - | 1.16 | -3.48 | 1.24 | 8.60 | -0.69 | 2.94 | 3.59 | 4.40 | 5.39 |
| Capital Expenditure | -2.20 | -1.84 | -0.99 | -28.51 | -2.60 | -11.55 | -14.14 | -17.31 | -21.19 | -25.94 |
| UFCF | 14.27 | -0.47 | -5.62 | -50.47 | -1.19 | -9.01 | -9.68 | -11.86 | -14.51 | -17.77 |
| WACC | ||||||||||
| PV UFCF | -8.59 | -8.80 | -10.26 | -11.98 | -13.98 | |||||
| SUM PV UFCF | -53.61 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.92 |
| Free cash flow (t + 1) | -18.13 |
| Terminal Value | -620.76 |
| Present Value of Terminal Value | -488.24 |
Intrinsic Value
| Enterprise Value | -541.85 |
|---|---|
| Net Debt | 15.96 |
| Equity Value | -557.81 |
| Shares Outstanding | 27.46 |
| Equity Value Per Share | -20.31 |