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	422.99	652.11	902.72	1,740.56	1,080.67	1,479.16	2,024.59	2,771.15	3,792.99	5,191.63
Revenue (%)
EBITDA	77.01	187.54	378.13	703.42	84.76	405.62	555.19	759.91	1,040.12	1,423.66
EBITDA (%)
EBIT	63.20	168.50	358.76	677.55	44.80	365.63	500.46	685	937.59	1,283.32
EBIT (%)
Depreciation	13.81	19.05	19.37	25.87	39.97	39.98	54.73	74.91	102.53	140.34
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	179.44	104.27	103.60	278.93	268.62	327.69	448.53	613.92	840.30	1,150.15
Total Cash (%)
Account Receivables	120.38	302.12	445.28	954.59	900.58	775.95	1,062.08	1,453.72	1,989.77	2,723.48
Account Receivables (%)
Inventories	0.84	27.82	1.44	0.93	101.67	41.67	57.03	78.06	106.85	146.24
Inventories (%)
Accounts Payable	5.65	4.48	2.72	6.33	81.38	30.23	41.37	56.63	77.51	106.09
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	422.99	652.11	902.72	1,740.56	1,080.67	1,479.16	2,024.59	2,771.15	3,792.99	5,191.63
EBITDA	77.01	187.54	378.13	703.42	84.76	405.62	555.19	759.91	1,040.12	1,423.66
EBIT	63.20	168.50	358.76	677.55	44.80	365.63	500.46	685	937.59	1,283.32
Tax Rate	27.20%	30.00%	26.59%	27.61%	28.97%	28.07%	28.07%	28.07%	28.07%	28.07%
EBIAT	46.01	117.94	263.37	490.51	31.82	262.99	359.97	492.70	674.38	923.06
Depreciation	13.81	19.05	19.37	25.87	39.97	39.98	54.73	74.91	102.53	140.34
Accounts Receivable	-	-181.74	-143.16	-509.31	54.01	124.63	-286.13	-391.64	-536.05	-733.71
Inventories	-	-26.98	26.38	0.51	-100.75	60.01	-15.36	-21.03	-28.78	-39.40
Accounts Payable	-	-1.17	-1.76	3.60	75.06	-51.16	11.15	15.26	20.88	28.58
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	-76.36	162.16	10.51	96.19	429.22	114.46	156.66	214.43	293.50
WACC
PV UFCF						405.88	102.35	132.47	171.46	221.92
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