Discounted Cash Flow (DCF) Analysis Unlevered

iHeartMedia, Inc. (IHRT)

$8.68

-0.45 (-4.93%)
All numbers are in Millions, Currency in USD
Stock DCF: 157.70 | 8.68 | 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 6,170.996,325.783,683.532,948.223,558.343,215.592,905.862,625.962,373.022,144.45
Revenue (%)
EBITDA 1,615.581,098.2811,360.55-1,695.39318.611,951.261,763.311,593.461,439.981,301.28
EBITDA (%)
EBIT 1,014.29567.3711,058.09-2,098.32-150.811,609.071,454.091,314.031,187.461,073.08
EBIT (%)
Depreciation 601.29530.90302.46402.93469.42342.18309.22279.44252.52228.20
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 267.11406.49400.30720.66352.13359.90325.23293.91265.60240.01
Total Cash (%)
Account Receivables 1,508.371,575.17928.71813.831,048.13846.45764.92691.24624.66564.49
Account Receivables (%)
Inventories 22.4718.420.511.153.155.124.634.183.783.42
Inventories (%)
Accounts Payable 163.45163.1587.37149.33206.01118.68107.2596.9287.5979.15
Accounts Payable (%)
Capital Expenditure -291.97-296.32-75.99-85.21-183.37-125.55-113.46-102.53-92.65-83.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.68
Beta 1.800
Diluted Shares Outstanding 150.40
Cost of Debt
Tax Rate -6.13
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.296
Total Debt 6,566.27
Total Equity 1,305.45
Total Capital 7,871.71
Debt Weighting 83.42
Equity Weighting 16.58
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 6,170.996,325.783,683.532,948.223,558.343,215.592,905.862,625.962,373.022,144.45
EBITDA 1,615.581,098.2811,360.55-1,695.39318.611,951.261,763.311,593.461,439.981,301.28
EBIT 1,014.29567.3711,058.09-2,098.32-150.811,609.071,454.091,314.031,187.461,073.08
Tax Rate 57.07%-29.19%-17.03%8.77%-6.13%2.70%2.70%2.70%2.70%2.70%
EBIAT 435.48732.9912,941.74-1,914.22-160.061,565.691,414.881,278.601,155.441,044.15
Depreciation 601.29530.90302.46402.93469.42342.18309.22279.44252.52228.20
Accounts Receivable --66.80646.46114.88-234.30201.6881.5373.6866.5860.17
Inventories -4.0517.91-0.65-2-1.970.490.450.400.36
Accounts Payable --0.30-75.7861.9656.67-87.32-11.43-10.33-9.34-8.44
Capital Expenditure -291.97-296.32-75.99-85.20-183.37-125.55-113.46-102.53-92.65-83.73
UFCF 744.81904.5313,756.79-1,420.30-53.641,894.721,681.241,519.301,372.961,240.71
WACC
PV UFCF 1,786.791,495.171,274.191,085.87925.39
SUM PV UFCF 6,567.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.04
Free cash flow (t + 1) 1,265.53
Terminal Value 31,324.92
Present Value of Terminal Value 23,363.69

Intrinsic Value

Enterprise Value 29,931.10
Net Debt 6,214.14
Equity Value 23,716.97
Shares Outstanding 150.40
Equity Value Per Share 157.70