Discounted Cash Flow (DCF) Analysis Unlevered

PCTEL, Inc. (PCTI)

$4.7

-0.02 (-0.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.50 | 4.7 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	91.44	82.98	90.62	77.46	87.81	87.54	87.28	87.02	86.75	86.49
Revenue (%)
EBITDA	5.08	-1.17	7.54	6.61	0.19	3.72	3.70	3.69	3.68	3.67
EBITDA (%)
EBIT	1.35	-5.06	3.79	3.45	-3.54	-0	-0	-0	-0	-0
EBIT (%)
Depreciation	3.73	3.89	3.75	3.16	3.73	3.72	3.71	3.70	3.69	3.67
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	38.06	35.20	39.65	36.34	30.75	36.72	36.61	36.50	36.39	36.28
Total Cash (%)
Account Receivables	18.43	15.86	17.38	16.60	17.54	17.48	17.43	17.38	17.33	17.27
Account Receivables (%)
Inventories	12.76	12.85	11.94	9.98	13.69	12.45	12.41	12.37	12.33	12.30
Inventories (%)
Accounts Payable	5.47	6.08	3.19	4.43	5.36	5.02	5	4.99	4.97	4.96
Accounts Payable (%)
Capital Expenditure	-2.67	-2.75	-2.26	-4.09	-3.08	-3.07	-3.06	-3.05	-3.04	-3.03
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 4.7
Beta	0.426
Diluted Shares Outstanding	18.12
Cost of Debt
Tax Rate	20.31
After-tax Cost of Debt	3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.651
Total Debt	-
Total Equity	85.17
Total Capital	85.17
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	91.44	82.98	90.62	77.46	87.81	87.54	87.28	87.02	86.75	86.49
EBITDA	5.08	-1.17	7.54	6.61	0.19	3.72	3.70	3.69	3.68	3.67
EBIT	1.35	-5.06	3.79	3.45	-3.54	-0	-0	-0	-0	-0
Tax Rate	-148.50%	-154.62%	1.06%	0.84%	20.31%	-56.18%	-56.18%	-56.18%	-56.18%	-56.18%
EBIAT	3.36	-12.89	3.75	3.42	-2.82	-0.01	-0.01	-0.01	-0.01	-0.01
Depreciation	3.73	3.89	3.75	3.16	3.73	3.72	3.71	3.70	3.69	3.67
Accounts Receivable	-	2.56	-1.52	0.78	-0.93	0.05	0.05	0.05	0.05	0.05
Inventories	-	-0.09	0.91	1.95	-3.71	1.24	0.04	0.04	0.04	0.04
Accounts Payable	-	0.61	-2.89	1.24	0.93	-0.34	-0.02	-0.02	-0.02	-0.01
Capital Expenditure	-2.67	-2.75	-2.26	-4.09	-3.08	-3.07	-3.06	-3.05	-3.04	-3.03
UFCF	4.42	-8.67	1.75	6.46	-5.88	1.60	0.72	0.72	0.71	0.71
WACC
PV UFCF						1.52	0.64	0.61	0.57	0.54
SUM PV UFCF										3.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.65
Free cash flow (t + 1)	0.73
Terminal Value	19.91
Present Value of Terminal Value	15.13

Intrinsic Value

Enterprise Value	19.01
Net Debt	-8.19
Equity Value	27.20
Shares Outstanding	18.12
Equity Value Per Share	1.50