Discounted Cash Flow (DCF) Analysis Unlevered

B. Riley Financial, Inc. (RILYP)

$20.75

+0.20 (+0.97%)
All numbers are in Millions, Currency in USD
Stock DCF: 165.25 | 20.75 | undervalue

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 422.99652.11902.721,740.561,080.671,479.162,024.592,771.153,792.995,191.63
Revenue (%)
EBITDA 77.01187.54378.13703.4284.76405.62555.19759.911,040.121,423.66
EBITDA (%)
EBIT 63.20168.50358.76677.5544.80365.63500.46685937.591,283.32
EBIT (%)
Depreciation 13.8119.0519.3725.8739.9739.9854.7374.91102.53140.34
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 179.44104.27103.60278.93268.62327.69448.53613.92840.301,150.15
Total Cash (%)
Account Receivables 120.38302.12445.28954.59900.58775.951,062.081,453.721,989.772,723.48
Account Receivables (%)
Inventories 0.8427.821.440.93101.6741.6757.0378.06106.85146.24
Inventories (%)
Accounts Payable 5.654.482.726.3381.3830.2341.3756.6377.51106.09
Accounts Payable (%)
Capital Expenditure -5.43-3.46-2.04-0.68-3.92-7.23-9.89-13.54-18.53-25.36
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.75
Beta 1.873
Diluted Shares Outstanding 29.01
Cost of Debt
Tax Rate 28.97
After-tax Cost of Debt 3.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.381
Total Debt 2,545.89
Total Equity 601.87
Total Capital 3,147.76
Debt Weighting 80.88
Equity Weighting 19.12
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 422.99652.11902.721,740.561,080.671,479.162,024.592,771.153,792.995,191.63
EBITDA 77.01187.54378.13703.4284.76405.62555.19759.911,040.121,423.66
EBIT 63.20168.50358.76677.5544.80365.63500.46685937.591,283.32
Tax Rate 27.20%30.00%26.59%27.61%28.97%28.07%28.07%28.07%28.07%28.07%
EBIAT 46.01117.94263.37490.5131.82262.99359.97492.70674.38923.06
Depreciation 13.8119.0519.3725.8739.9739.9854.7374.91102.53140.34
Accounts Receivable --181.74-143.16-509.3154.01124.63-286.13-391.64-536.05-733.71
Inventories --26.9826.380.51-100.7560.01-15.36-21.03-28.78-39.40
Accounts Payable --1.17-1.763.6075.06-51.1611.1515.2620.8828.58
Capital Expenditure -5.43-3.46-2.04-0.68-3.92-7.23-9.89-13.54-18.53-25.36
UFCF 54.39-76.36162.1610.5196.19429.22114.46156.66214.43293.50
WACC
PV UFCF 405.88102.35132.47171.46221.92
SUM PV UFCF 1,034.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.75
Free cash flow (t + 1) 299.37
Terminal Value 7,983.18
Present Value of Terminal Value 6,036.34

Intrinsic Value

Enterprise Value 7,070.43
Net Debt 2,277.28
Equity Value 4,793.15
Shares Outstanding 29.01
Equity Value Per Share 165.25