Discounted Cash Flow (DCF) Analysis Unlevered

Renren Inc. (RENN)

$29.62

-0.09 (-0.30%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.60 | 29.62 | 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 202.10498.20349.7818.1132.2240.2650.3162.8778.5698.17
Revenue (%)
EBITDA -102.6969.24-45.47-18.0113.07-8.76-10.95-13.68-17.10-21.37
EBITDA (%)
EBIT -104.7267.79-46.45-18.9812.74-9.40-11.75-14.68-18.35-22.93
EBIT (%)
Depreciation 2.031.440.970.970.330.640.8011.251.56
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 128.6015.335.9119.6365.2530.5438.1747.6959.6074.47
Total Cash (%)
Account Receivables 153.8931.292.383.492.388.8411.0513.8017.2521.55
Account Receivables (%)
Inventories 95.0159.2021.980.700.365.657.068.8211.0313.78
Inventories (%)
Accounts Payable 20.058.265.390.951.651.892.362.953.694.61
Accounts Payable (%)
Capital Expenditure -0.14-0.88-0.48-0.22-0.10-0.15-0.19-0.24-0.30-0.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 29.62
Beta 1.143
Diluted Shares Outstanding 23.64
Cost of Debt
Tax Rate 130.11
After-tax Cost of Debt -0.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.092
Total Debt 2.35
Total Equity 700.12
Total Capital 702.47
Debt Weighting 0.34
Equity Weighting 99.66
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 202.10498.20349.7818.1132.2240.2650.3162.8778.5698.17
EBITDA -102.6969.24-45.47-18.0113.07-8.76-10.95-13.68-17.10-21.37
EBIT -104.7267.79-46.45-18.9812.74-9.40-11.75-14.68-18.35-22.93
Tax Rate 36.27%149.51%48.90%-13.49%130.11%70.26%70.26%70.26%70.26%70.26%
EBIAT -66.74-33.57-23.73-21.54-3.84-2.80-3.49-4.37-5.46-6.82
Depreciation 2.031.440.970.970.330.640.8011.251.56
Accounts Receivable -122.6028.91-1.111.11-6.46-2.21-2.76-3.45-4.31
Inventories -35.8137.2221.280.35-5.29-1.41-1.76-2.20-2.75
Accounts Payable --11.79-2.86-4.440.700.240.470.590.740.92
Capital Expenditure -0.14-0.88-0.48-0.22-0.10-0.15-0.19-0.24-0.30-0.38
UFCF -64.85113.6240.03-5.07-1.45-13.82-6.03-7.54-9.42-11.77
WACC
PV UFCF -12.68-5.07-5.81-6.66-7.63
SUM PV UFCF -37.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.06
Free cash flow (t + 1) -12.01
Terminal Value -170.10
Present Value of Terminal Value -110.25

Intrinsic Value

Enterprise Value -148.10
Net Debt -62.89
Equity Value -85.21
Shares Outstanding 23.64
Equity Value Per Share -3.60