Discounted Cash Flow (DCF) Analysis Unlevered
Richardson Electronics, Ltd. (RELL)
$17.76
+0.63 (+3.68%)
All numbers are in Millions, Currency in USD
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 | 163.21 | 166.65 | 155.90 | 176.94 | 224.62 | 244.89 | 266.99 | 291.09 | 317.36 | 346 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 8.35 | -3.14 | 2.17 | 5.73 | 19.26 | 8.05 | 8.78 | 9.57 | 10.44 | 11.38 |
EBITDA (%) | ||||||||||
EBIT | 5.36 | -6.31 | -1.21 | 2.31 | 15.84 | 3.46 | 3.78 | 4.12 | 4.49 | 4.89 |
EBIT (%) | ||||||||||
Depreciation | 2.99 | 3.17 | 3.39 | 3.42 | 3.42 | 4.59 | 5 | 5.45 | 5.95 | 6.48 |
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 | 60.46 | 50.02 | 46.53 | 43.32 | 40.50 | 68.29 | 74.45 | 81.17 | 88.49 | 96.48 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 22.89 | 24.30 | 20.20 | 25.10 | 29.88 | 33.82 | 36.87 | 40.20 | 43.82 | 47.78 |
Account Receivables (%) | ||||||||||
Inventories | 50.72 | 53.23 | 57.49 | 63.51 | 80.39 | 84.04 | 91.62 | 99.89 | 108.90 | 118.73 |
Inventories (%) | ||||||||||
Accounts Payable | 19.60 | 16.94 | 17.37 | 16.98 | 23.99 | 26.25 | 28.62 | 31.20 | 34.02 | 37.09 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -5.24 | -3.87 | -1.78 | -2.63 | -3.12 | -4.68 | -5.10 | -5.56 | -6.06 | -6.61 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 17.76 |
---|---|
Beta | 0.547 |
Diluted Shares Outstanding | 13.90 |
Cost of Debt | |
Tax Rate | -13.76 |
After-tax Cost of Debt | 2.65% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 5.464 |
Total Debt | 3.02 |
Total Equity | 246.95 |
Total Capital | 249.98 |
Debt Weighting | 1.21 |
Equity Weighting | 98.79 |
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 | 163.21 | 166.65 | 155.90 | 176.94 | 224.62 | 244.89 | 266.99 | 291.09 | 317.36 | 346 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 8.35 | -3.14 | 2.17 | 5.73 | 19.26 | 8.05 | 8.78 | 9.57 | 10.44 | 11.38 |
EBIT | 5.36 | -6.31 | -1.21 | 2.31 | 15.84 | 3.46 | 3.78 | 4.12 | 4.49 | 4.89 |
Tax Rate | 0.98% | -16.11% | -51.40% | 28.29% | -13.76% | -10.40% | -10.40% | -10.40% | -10.40% | -10.40% |
EBIAT | 5.30 | -7.33 | -1.84 | 1.65 | 18.02 | 3.82 | 4.17 | 4.55 | 4.96 | 5.40 |
Depreciation | 2.99 | 3.17 | 3.39 | 3.42 | 3.42 | 4.59 | 5 | 5.45 | 5.95 | 6.48 |
Accounts Receivable | - | -1.40 | 4.10 | -4.90 | -4.78 | -3.94 | -3.05 | -3.33 | -3.63 | -3.96 |
Inventories | - | -2.51 | -4.26 | -6.02 | -16.88 | -3.65 | -7.58 | -8.27 | -9.01 | -9.83 |
Accounts Payable | - | -2.66 | 0.43 | -0.39 | 7.01 | 2.26 | 2.37 | 2.58 | 2.82 | 3.07 |
Capital Expenditure | -5.24 | -3.87 | -1.78 | -2.63 | -3.12 | -4.68 | -5.10 | -5.56 | -6.06 | -6.61 |
UFCF | 3.06 | -14.61 | 0.04 | -8.86 | 3.67 | -1.59 | -4.19 | -4.57 | -4.99 | -5.44 |
WACC | ||||||||||
PV UFCF | -1.51 | -3.77 | -3.90 | -4.04 | -4.17 | |||||
SUM PV UFCF | -17.39 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.43 |
Free cash flow (t + 1) | -5.55 |
Terminal Value | -161.66 |
Present Value of Terminal Value | -124.11 |
Intrinsic Value
Enterprise Value | -141.50 |
---|---|
Net Debt | -32.47 |
Equity Value | -109.03 |
Shares Outstanding | 13.90 |
Equity Value Per Share | -7.84 |