Discounted Cash Flow (DCF) Analysis Unlevered

Richardson Electronics, Ltd. (RELL)

$17.76

+0.63 (+3.68%)
All numbers are in Millions, Currency in USD
Stock DCF: -7.84 | 17.76 | overvalue

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 163.21166.65155.90176.94224.62244.89266.99291.09317.36346
Revenue (%)
EBITDA 8.35-3.142.175.7319.268.058.789.5710.4411.38
EBITDA (%)
EBIT 5.36-6.31-1.212.3115.843.463.784.124.494.89
EBIT (%)
Depreciation 2.993.173.393.423.424.5955.455.956.48
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 60.4650.0246.5343.3240.5068.2974.4581.1788.4996.48
Total Cash (%)
Account Receivables 22.8924.3020.2025.1029.8833.8236.8740.2043.8247.78
Account Receivables (%)
Inventories 50.7253.2357.4963.5180.3984.0491.6299.89108.90118.73
Inventories (%)
Accounts Payable 19.6016.9417.3716.9823.9926.2528.6231.2034.0237.09
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 163.21166.65155.90176.94224.62244.89266.99291.09317.36346
EBITDA 8.35-3.142.175.7319.268.058.789.5710.4411.38
EBIT 5.36-6.31-1.212.3115.843.463.784.124.494.89
Tax Rate 0.98%-16.11%-51.40%28.29%-13.76%-10.40%-10.40%-10.40%-10.40%-10.40%
EBIAT 5.30-7.33-1.841.6518.023.824.174.554.965.40
Depreciation 2.993.173.393.423.424.5955.455.956.48
Accounts Receivable --1.404.10-4.90-4.78-3.94-3.05-3.33-3.63-3.96
Inventories --2.51-4.26-6.02-16.88-3.65-7.58-8.27-9.01-9.83
Accounts Payable --2.660.43-0.397.012.262.372.582.823.07
Capital Expenditure -5.24-3.87-1.78-2.63-3.12-4.68-5.10-5.56-6.06-6.61
UFCF 3.06-14.610.04-8.863.67-1.59-4.19-4.57-4.99-5.44
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