Discounted Cash Flow (DCF) Analysis Unlevered

Lions Gate Entertainment Corp. (LGF-B)

$6.95

+0.07 (+1.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 147.86 | 6.95 | undervalue

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 4,129.103,680.503,8903,271.503,604.303,506.093,410.563,317.623,227.233,139.29
Revenue (%)
EBITDA 2,134.301,586.101,979.101,631.201,854.301,731.791,684.601,638.701,594.051,550.61
EBITDA (%)
EBIT 333.60-93.806.20179.7016.2081.5779.3577.1875.0873.04
EBIT (%)
Depreciation 1,800.701,679.901,972.901,451.501,838.101,650.221,605.251,561.511,518.961,477.58
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 378.10184.301,835528.70371.20615.64598.87582.55566.68551.24
Total Cash (%)
Account Receivables 1,087.40743.90522452.10570.50628.39611.26594.61578.41562.65
Account Receivables (%)
Inventories 20.3019.9020.0816.8918.6018.1017.6017.1216.6616.20
Inventories (%)
Accounts Payable --526442.37487.37474.09461.17448.60436.38424.49
Accounts Payable (%)
Capital Expenditure -45.90-43.80-31.10-35-33.10-35.69-34.72-33.77-32.85-31.95
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.95
Beta 1.390
Diluted Shares Outstanding 224.10
Cost of Debt
Tax Rate -6.33
After-tax Cost of Debt 4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.363
Total Debt 4,105
Total Equity 1,557.49
Total Capital 5,662.49
Debt Weighting 72.49
Equity Weighting 27.51
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 4,129.103,680.503,8903,271.503,604.303,506.093,410.563,317.623,227.233,139.29
EBITDA 2,134.301,586.101,979.101,631.201,854.301,731.791,684.601,638.701,594.051,550.61
EBIT 333.60-93.806.20179.7016.2081.5779.3577.1875.0873.04
Tax Rate -218.49%7.76%7.24%-8.62%-6.33%-43.69%-43.69%-43.69%-43.69%-43.69%
EBIAT 1,062.49-86.525.75195.1917.23117.21114.01110.91107.88104.94
Depreciation 1,800.701,679.901,972.901,451.501,838.101,650.221,605.251,561.511,518.961,477.58
Accounts Receivable -343.50221.9069.90-118.40-57.8917.1216.6616.2015.76
Inventories -0.40-0.183.19-1.720.510.490.480.470.45
Accounts Payable ----83.6345-13.28-12.92-12.57-12.22-11.89
Capital Expenditure -45.90-43.80-31.10-35-33.10-35.69-34.72-33.77-32.85-31.95
UFCF 2,817.291,893.482,169.271,601.151,747.111,661.081,689.251,643.221,598.441,554.89
WACC
PV UFCF 1,567.641,504.561,381.241,268.031,164.10
SUM PV UFCF 6,885.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.96
Free cash flow (t + 1) 1,585.99
Terminal Value 40,050.17
Present Value of Terminal Value 29,984.35

Intrinsic Value

Enterprise Value 36,869.92
Net Debt 3,733.80
Equity Value 33,136.12
Shares Outstanding 224.10
Equity Value Per Share 147.86