Discounted Cash Flow (DCF) Analysis Unlevered

Polar Power, Inc. (POLA)

$2.15

-0.06 (-2.71%)
All numbers are in Millions, Currency in USD
Stock DCF: -33.16 | 2.15 | 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 14.4224.0524.809.0316.9020.8425.7131.7139.1248.25
Revenue (%)
EBITDA -0.48-0.66-2.65-11.72-0.80-6.31-7.78-9.60-11.84-14.60
EBITDA (%)
EBIT -0.74-1.04-3.94-12.96-1.35-7.37-9.10-11.22-13.84-17.07
EBIT (%)
Depreciation 0.260.391.291.250.551.071.321.6222.47
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 13.205.642.841.655.107.298.9911.0913.6816.88
Total Cash (%)
Account Receivables 3.698.441.173.557.036.107.529.2811.4414.12
Account Receivables (%)
Inventories 5.498.4713.919.099.0211.8214.5717.9822.1827.36
Inventories (%)
Accounts Payable 0.761.070.570.310.330.720.891.101.361.68
Accounts Payable (%)
Capital Expenditure -0.34-0.57-0.34-0.02-0.07-0.28-0.35-0.43-0.53-0.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.15
Beta 0.588
Diluted Shares Outstanding 12.72
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.523
Total Debt 1.50
Total Equity 27.35
Total Capital 28.85
Debt Weighting 5.20
Equity Weighting 94.80
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 14.4224.0524.809.0316.9020.8425.7131.7139.1248.25
EBITDA -0.48-0.66-2.65-11.72-0.80-6.31-7.78-9.60-11.84-14.60
EBIT -0.74-1.04-3.94-12.96-1.35-7.37-9.10-11.22-13.84-17.07
Tax Rate 0.00%20.22%0.00%16.44%0.00%7.33%7.33%7.33%7.33%7.33%
EBIAT -0.74-0.83-3.94-10.83-1.35-6.83-8.43-10.40-12.83-15.82
Depreciation 0.260.391.291.250.551.071.321.6222.47
Accounts Receivable --4.767.28-2.38-3.480.93-1.42-1.76-2.17-2.67
Inventories --2.98-5.444.820.08-2.80-2.76-3.40-4.20-5.18
Accounts Payable -0.31-0.49-0.260.020.400.170.210.260.32
Capital Expenditure -0.34-0.57-0.34-0.02-0.07-0.28-0.35-0.43-0.53-0.65
UFCF -0.83-8.45-1.65-7.43-4.26-7.52-11.47-14.15-17.46-21.53
WACC
PV UFCF -7.06-10.14-11.75-13.63-15.80
SUM PV UFCF -58.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.39
Free cash flow (t + 1) -21.96
Terminal Value -500.33
Present Value of Terminal Value -367.08

Intrinsic Value

Enterprise Value -425.45
Net Debt -3.60
Equity Value -421.85
Shares Outstanding 12.72
Equity Value Per Share -33.16