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	6,170.99	6,325.78	3,683.53	2,948.22	3,558.34	3,215.59	2,905.86	2,625.96	2,373.02	2,144.45
Revenue (%)
EBITDA	1,615.58	1,098.28	11,360.55	-1,695.39	318.61	1,951.26	1,763.31	1,593.46	1,439.98	1,301.28
EBITDA (%)
EBIT	1,014.29	567.37	11,058.09	-2,098.32	-150.81	1,609.07	1,454.09	1,314.03	1,187.46	1,073.08
EBIT (%)
Depreciation	601.29	530.90	302.46	402.93	469.42	342.18	309.22	279.44	252.52	228.20
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	267.11	406.49	400.30	720.66	352.13	359.90	325.23	293.91	265.60	240.01
Total Cash (%)
Account Receivables	1,508.37	1,575.17	928.71	813.83	1,048.13	846.45	764.92	691.24	624.66	564.49
Account Receivables (%)
Inventories	22.47	18.42	0.51	1.15	3.15	5.12	4.63	4.18	3.78	3.42
Inventories (%)
Accounts Payable	163.45	163.15	87.37	149.33	206.01	118.68	107.25	96.92	87.59	79.15
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	6,170.99	6,325.78	3,683.53	2,948.22	3,558.34	3,215.59	2,905.86	2,625.96	2,373.02	2,144.45
EBITDA	1,615.58	1,098.28	11,360.55	-1,695.39	318.61	1,951.26	1,763.31	1,593.46	1,439.98	1,301.28
EBIT	1,014.29	567.37	11,058.09	-2,098.32	-150.81	1,609.07	1,454.09	1,314.03	1,187.46	1,073.08
Tax Rate	57.07%	-29.19%	-17.03%	8.77%	-6.13%	2.70%	2.70%	2.70%	2.70%	2.70%
EBIAT	435.48	732.99	12,941.74	-1,914.22	-160.06	1,565.69	1,414.88	1,278.60	1,155.44	1,044.15
Depreciation	601.29	530.90	302.46	402.93	469.42	342.18	309.22	279.44	252.52	228.20
Accounts Receivable	-	-66.80	646.46	114.88	-234.30	201.68	81.53	73.68	66.58	60.17
Inventories	-	4.05	17.91	-0.65	-2	-1.97	0.49	0.45	0.40	0.36
Accounts Payable	-	-0.30	-75.78	61.96	56.67	-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	744.81	904.53	13,756.79	-1,420.30	-53.64	1,894.72	1,681.24	1,519.30	1,372.96	1,240.71
WACC
PV UFCF						1,786.79	1,495.17	1,274.19	1,085.87	925.39
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