Discounted Cash Flow (DCF) Analysis Unlevered

Virtus Convertible & Income Fund (NCV)

$3.26

+0.02 (+0.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 322.43 | 3.26 | 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 -6.0845.89156.3828.87-80.29135.24-227.80383.71-646.311,088.65
Revenue (%)
EBITDA -69.50-16.18115.21-65.51-81.24285.57-481.02810.23-1,364.762,298.80
EBITDA (%)
EBIT -----285.57-481.02810.23-1,364.762,298.80
EBIT (%)
Depreciation ----------
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 1.32-271.360.012.680.10-163.34275.14-463.44780.62-1,314.87
Total Cash (%)
Account Receivables 24.3215.567.597.4613.16-95.17160.30-270.01454.81-766.09
Account Receivables (%)
Inventories 50.17303.8896.35-9.7627.15-45.7377.03-129.75218.55-368.12
Inventories (%)
Accounts Payable 32.237.4923.914.3717.53-136.64230.15-387.67652.99-1,099.89
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 3.26
Beta 1.275
Diluted Shares Outstanding 90.37
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.179
Total Debt 170
Total Equity 294.62
Total Capital 464.62
Debt Weighting 36.59
Equity Weighting 63.41
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 -6.0845.89156.3828.87-80.29135.24-227.80383.71-646.311,088.65
EBITDA -69.50-16.18115.21-65.51-81.24285.57-481.02810.23-1,364.762,298.80
EBIT -----285.57-481.02810.23-1,364.762,298.80
Tax Rate 0.00%0.00%-0.00%-15.51%0.00%-3.10%-3.10%-3.10%-3.10%-3.10%
EBIAT -----294.44-495.95835.37-1,407.112,370.13
Depreciation ----------
Accounts Receivable -8.767.970.14-5.70108.33-255.47430.32-724.831,220.90
Inventories --253.71207.53106.11-36.9172.88-122.76206.78-348.29586.66
Accounts Payable --24.7316.41-19.5413.17-154.17366.79-617.821,040.66-1,752.88
Capital Expenditure ----------
UFCF -----321.47-507.39854.65-1,439.572,424.81
WACC
PV UFCF 297.72-435.17678.82-1,058.911,651.81
SUM PV UFCF 1,134.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.98
Free cash flow (t + 1) 2,473.31
Terminal Value 41,359.64
Present Value of Terminal Value 28,174.76

Intrinsic Value

Enterprise Value 29,309.04
Net Debt 169.90
Equity Value 29,139.14
Shares Outstanding 90.37
Equity Value Per Share 322.43