Discounted Cash Flow (DCF) Analysis Unlevered

Shenandoah Telecommunications Compa... (SHEN)

$20.56

+0.08 (+0.39%)

All numbers are in Millions, Currency in USD

Stock DCF: 3,818.17 | 20.56 | 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	630.85	633.91	220.78	245.24	213.33	177.80	148.19	123.51	102.94	85.79
Revenue (%)
EBITDA	263.36	260.59	174.84	1,052.34	1,429.92	448.57	373.86	311.59	259.70	216.45
EBITDA (%)
EBIT	96.96	100.51	126.14	997.14	1,361.74	403	335.88	279.94	233.31	194.46
EBIT (%)
Depreciation	166.41	160.08	48.70	55.21	68.17	45.57	37.98	31.66	26.38	21.99
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	85.09	101.65	195.40	85.14	44.06	61.66	51.39	42.83	35.70	29.75
Total Cash (%)
Account Receivables	59.69	118.69	70.39	52.19	50.37	37.33	31.11	25.93	21.61	18.01
Account Receivables (%)
Inventories	5.27	5.73	1.92	2.13	1.85	1.55	1.29	1.07	0.89	0.75
Inventories (%)
Accounts Payable	35.99	40.30	19.60	28.54	49.17	19.78	16.49	13.74	11.45	9.54
Accounts Payable (%)
Capital Expenditure	-136.64	-155.53	-120.45	-160.10	-189.61	-90.65	-75.55	-62.97	-52.48	-43.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 20.56
Beta	0.670
Diluted Shares Outstanding	50.15
Cost of Debt
Tax Rate	26.74
After-tax Cost of Debt	5.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.876
Total Debt	128.26
Total Equity	1,031.06
Total Capital	1,159.32
Debt Weighting	11.06
Equity Weighting	88.94
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	630.85	633.91	220.78	245.24	213.33	177.80	148.19	123.51	102.94	85.79
EBITDA	263.36	260.59	174.84	1,052.34	1,429.92	448.57	373.86	311.59	259.70	216.45
EBIT	96.96	100.51	126.14	997.14	1,361.74	403	335.88	279.94	233.31	194.46
Tax Rate	24.98%	22.67%	-6,111.91%	-15,919.74%	26.74%	-4,391.45%	-4,391.45%	-4,391.45%	-4,391.45%	-4,391.45%
EBIAT	72.74	77.72	7,835.52	159,738.79	997.63	18,100.33	15,085.75	12,573.25	10,479.19	8,733.90
Depreciation	166.41	160.08	48.70	55.21	68.17	45.57	37.98	31.66	26.38	21.99
Accounts Receivable	-	-59	48.30	18.20	1.82	13.04	6.22	5.18	4.32	3.60
Inventories	-	-0.46	3.81	-0.21	0.28	0.31	0.26	0.21	0.18	0.15
Accounts Payable	-	4.31	-20.70	8.94	20.63	-29.39	-3.29	-2.75	-2.29	-1.91
Capital Expenditure	-136.64	-155.53	-120.45	-160.10	-189.61	-90.65	-75.55	-62.97	-52.48	-43.74
UFCF	102.50	27.11	7,795.18	159,660.82	898.92	18,039.22	15,051.36	12,544.58	10,455.30	8,713.99
WACC
PV UFCF						16,906.48	13,220.47	10,326.73	8,066.39	6,300.79
SUM PV UFCF										54,820.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.70
Free cash flow (t + 1)	8,888.27
Terminal Value	189,112.15
Present Value of Terminal Value	136,740.55

Intrinsic Value

Enterprise Value	191,561.42
Net Debt	84.20
Equity Value	191,477.22
Shares Outstanding	50.15
Equity Value Per Share	3,818.17