Discounted Cash Flow (DCF) Analysis Unlevered

LL Flooring Holdings, Inc. (LL)

$3.37

-0.08 (-2.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.30 | 3.37 | overvalue

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	1,084.64	1,092.60	1,097.70	1,152.34	1,110.68	1,117.80	1,124.96	1,132.17	1,139.42	1,146.73
Revenue (%)
EBITDA	-32.15	34.18	73.93	71.52	6.69	30.64	30.84	31.04	31.24	31.44
EBITDA (%)
EBIT	-50.57	16.72	56.28	52.69	-11.72	12.32	12.40	12.48	12.56	12.64
EBIT (%)
Depreciation	18.43	17.47	17.64	18.83	18.41	18.32	18.44	18.56	18.68	18.80
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	11.56	8.99	169.94	85.19	10.80	57.54	57.90	58.27	58.65	59.02
Total Cash (%)
Account Receivables	27.80	27.02	4.08	9.16	9.05	15.69	15.79	15.89	15.99	16.10
Account Receivables (%)
Inventories	318.27	286.37	244.41	254.38	332.30	290.21	292.07	293.94	295.82	297.72
Inventories (%)
Accounts Payable	73.41	59.83	70.54	63.46	47.73	63.66	64.07	64.48	64.89	65.31
Accounts Payable (%)
Capital Expenditure	-14.33	-19.91	-15.83	-19.44	-22.05	-18.46	-18.58	-18.70	-18.82	-18.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 3.37
Beta	2.031
Diluted Shares Outstanding	28.86
Cost of Debt
Tax Rate	10.76
After-tax Cost of Debt	3.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.841
Total Debt	205.69
Total Equity	97.26
Total Capital	302.95
Debt Weighting	67.90
Equity Weighting	32.10
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	1,084.64	1,092.60	1,097.70	1,152.34	1,110.68	1,117.80	1,124.96	1,132.17	1,139.42	1,146.73
EBITDA	-32.15	34.18	73.93	71.52	6.69	30.64	30.84	31.04	31.24	31.44
EBIT	-50.57	16.72	56.28	52.69	-11.72	12.32	12.40	12.48	12.56	12.64
Tax Rate	-1.83%	25.39%	-14.52%	21.01%	10.76%	8.16%	8.16%	8.16%	8.16%	8.16%
EBIAT	-51.50	12.47	64.45	41.62	-10.46	11.31	11.39	11.46	11.53	11.61
Depreciation	18.43	17.47	17.64	18.83	18.41	18.32	18.44	18.56	18.68	18.80
Accounts Receivable	-	0.77	22.95	-5.08	0.11	-6.64	-0.10	-0.10	-0.10	-0.10
Inventories	-	31.90	41.96	-9.98	-77.91	42.09	-1.86	-1.87	-1.88	-1.90
Accounts Payable	-	-13.59	10.72	-7.08	-15.73	15.93	0.41	0.41	0.41	0.42
Capital Expenditure	-14.33	-19.91	-15.83	-19.44	-22.05	-18.46	-18.58	-18.70	-18.82	-18.94
UFCF	-47.41	29.12	141.89	18.87	-107.63	62.56	9.70	9.76	9.82	9.89
WACC
PV UFCF						58.45	8.47	7.96	7.49	7.04
SUM PV UFCF										89.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.02
Free cash flow (t + 1)	10.08
Terminal Value	200.86
Present Value of Terminal Value	143.08

Intrinsic Value

Enterprise Value	232.49
Net Debt	194.90
Equity Value	37.60
Shares Outstanding	28.86
Equity Value Per Share	1.30