Discounted Cash Flow (DCF) Analysis Unlevered

MSG Networks Inc. (MSGN)

$14.17

-0.13 (-0.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 71.75 | 14.17 | undervalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 658.20675.35696.65720.85685.80693.29700.87708.52716.27724.09
Revenue (%)
EBITDA 134.87326.22325.17323.88302.57283.59286.69289.82292.99296.19
EBITDA (%)
EBIT 120.29315.93315.84316.49295.41273.67276.66279.68282.74285.83
EBIT (%)
Depreciation 14.5810.309.347.407.169.9210.0210.1310.2410.36
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 119.57141.09205.34226.42196.84178.38180.33182.30184.29186.30
Total Cash (%)
Account Receivables 116.92122.18122.76124.44119.74122.30123.63124.98126.35127.73
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 2.041.241.460.912.111.581.601.611.631.65
Accounts Payable (%)
Capital Expenditure -3.32-4.89-3.72-2.88-2.81-3.57-3.61-3.65-3.69-3.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 14.17
Beta 1.170
Diluted Shares Outstanding 63.52
Cost of Debt
Tax Rate 28.51
After-tax Cost of Debt 2.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.369
Total Debt 1,081.01
Total Equity 900.01
Total Capital 1,981.02
Debt Weighting 54.57
Equity Weighting 45.43
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 658.20675.35696.65720.85685.80693.29700.87708.52716.27724.09
EBITDA 134.87326.22325.17323.88302.57283.59286.69289.82292.99296.19
EBIT 120.29315.93315.84316.49295.41273.67276.66279.68282.74285.83
Tax Rate 96.87%39.36%-6.00%30.76%28.51%37.90%37.90%37.90%37.90%37.90%
EBIAT 3.76191.59334.77219.13211.19169.95171.80173.68175.58177.50
Depreciation 14.5810.309.347.407.169.9210.0210.1310.2410.36
Accounts Receivable --5.26-0.57-1.684.70-2.56-1.34-1.35-1.37-1.38
Inventories ----------
Accounts Payable --0.800.22-0.551.21-0.540.020.020.020.02
Capital Expenditure -3.32-4.89-3.72-2.88-2.81-3.57-3.61-3.65-3.69-3.73
UFCF 15.02190.93340.03221.42221.45173.20176.90178.83180.79182.76
WACC
PV UFCF 164.78160.12154148.11142.45
SUM PV UFCF 769.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.11
Free cash flow (t + 1) 186.42
Terminal Value 5,994.19
Present Value of Terminal Value 4,672.08

Intrinsic Value

Enterprise Value 5,441.55
Net Debt 884.17
Equity Value 4,557.37
Shares Outstanding 63.52
Equity Value Per Share 71.75