Discounted Cash Flow (DCF) Analysis Unlevered

Lions Gate Entertainment Corp. (LGF-B)

$8.435

-0.51 (-5.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 89.90 | 8.435 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	3,680.50	3,890	3,271.50	3,604.30	3,854.80	3,921.44	3,989.23	4,058.20	4,128.36	4,199.73
Revenue (%)
EBITDA	1,852.30	1,980.50	1,595.70	1,880.80	1,924	1,977.27	2,011.45	2,046.22	2,081.60	2,117.58
EBITDA (%)
EBIT	172.40	7.60	144.20	42.70	9.20	84	85.45	86.93	88.43	89.96
EBIT (%)
Depreciation	1,679.90	1,972.90	1,451.50	1,838.10	1,914.80	1,893.26	1,926	1,959.29	1,993.16	2,027.62
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	184.30	318.20	528.70	371.20	272.10	366.31	372.64	379.08	385.64	392.30
Total Cash (%)
Account Receivables	647.20	522	383.70	442.20	582.10	549.80	559.30	568.97	578.81	588.81
Account Receivables (%)
Inventories	19.90	13.40	14.30	14.10	16.51	16.80	17.09	17.38	17.68	17.99
Inventories (%)
Accounts Payable	531.20	526.90	545.40	536.43	573.71	583.63	593.72	603.98	614.42	625.05
Accounts Payable (%)
Capital Expenditure	-43.80	-31.10	-35	-33.10	-49	-41.17	-41.88	-42.60	-43.34	-44.09
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 8.435
Beta	1.310
Diluted Shares Outstanding	227.90
Cost of Debt
Tax Rate	-1.07
After-tax Cost of Debt	10.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.498
Total Debt	2,019.60
Total Equity	1,922.34
Total Capital	3,941.94
Debt Weighting	51.23
Equity Weighting	48.77
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	3,680.50	3,890	3,271.50	3,604.30	3,854.80	3,921.44	3,989.23	4,058.20	4,128.36	4,199.73
EBITDA	1,852.30	1,980.50	1,595.70	1,880.80	1,924	1,977.27	2,011.45	2,046.22	2,081.60	2,117.58
EBIT	172.40	7.60	144.20	42.70	9.20	84	85.45	86.93	88.43	89.96
Tax Rate	7.76%	-1.62%	-98.28%	-16.05%	-1.07%	-21.85%	-21.85%	-21.85%	-21.85%	-21.85%
EBIAT	159.03	7.72	285.91	49.55	9.30	102.36	104.13	105.93	107.76	109.62
Depreciation	1,679.90	1,972.90	1,451.50	1,838.10	1,914.80	1,893.26	1,926	1,959.29	1,993.16	2,027.62
Accounts Receivable	-	125.20	138.30	-58.50	-139.90	32.30	-9.50	-9.67	-9.84	-10.01
Inventories	-	6.50	-0.90	0.20	-2.41	-0.29	-0.29	-0.30	-0.30	-0.31
Accounts Payable	-	-4.30	18.50	-8.97	37.28	9.92	10.09	10.26	10.44	10.62
Capital Expenditure	-43.80	-31.10	-35	-33.10	-49	-41.17	-41.88	-42.60	-43.34	-44.09
UFCF	1,795.13	2,076.92	1,858.31	1,787.28	1,770.07	1,996.39	1,988.54	2,022.92	2,057.89	2,093.46
WACC
PV UFCF						1,802.94	1,621.82	1,489.99	1,368.86	1,257.59
SUM PV UFCF										7,541.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.73
Free cash flow (t + 1)	2,135.33
Terminal Value	24,459.73
Present Value of Terminal Value	14,693.50

Intrinsic Value

Enterprise Value	22,234.69
Net Debt	1,747.50
Equity Value	20,487.19
Shares Outstanding	227.90
Equity Value Per Share	89.90