Discounted Cash Flow (DCF) Analysis Unlevered
The Beauty Health Company (SKIN)
$12.11
+0.25 (+2.11%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 166.62 | 119.09 | 260.09 | 365.88 | 525.08 | 753.56 | 1,081.46 | 1,552.04 | 2,227.38 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| EBITDA | 28.10 | -2.68 | -355.26 | 70 | -135 | -193.74 | -278.05 | -399.04 | -572.67 |
| EBITDA (%) | |||||||||
| EBIT | 14.16 | -17.21 | -365.57 | 58.42 | -171.36 | -245.93 | -352.94 | -506.52 | -726.92 |
| EBIT (%) | |||||||||
| Depreciation | 13.94 | 14.53 | 10.31 | 11.58 | 36.36 | 52.19 | 74.89 | 107.48 | 154.25 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 7.31 | 9.49 | 901.89 | 568.20 | 675.27 | 969.10 | 1,390.79 | 1,995.97 | 2,864.48 |
|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||
| Account Receivables | 23.72 | 23.19 | 51.42 | 76.49 | 97.64 | 140.13 | 201.11 | 288.62 | 414.20 |
| Account Receivables (%) | |||||||||
| Inventories | 19.44 | 23.20 | 35.26 | 116.43 | 100.46 | 144.17 | 206.90 | 296.93 | 426.13 |
| Inventories (%) | |||||||||
| Accounts Payable | 14.26 | 18.49 | 29.05 | 30.33 | 57.15 | 82.02 | 117.71 | 168.93 | 242.44 |
| Accounts Payable (%) | |||||||||
| Capital Expenditure | -10.42 | -3.82 | 0.32 | 0.09 | -12.22 | -17.54 | -25.18 | -36.13 | -51.85 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 12.11 |
|---|---|
| Beta | 1.153 |
| Diluted Shares Outstanding | 148.51 |
| Cost of Debt | |
| Tax Rate | 1.44 |
| After-tax Cost of Debt | 1.75% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.824 |
| Total Debt | 751.79 |
| Total Equity | 1,798.41 |
| Total Capital | 2,550.20 |
| Debt Weighting | 29.48 |
| Equity Weighting | 70.52 |
| Wacc |
Build Up Free Cash
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 166.62 | 119.09 | 260.09 | 365.88 | 525.08 | 753.56 | 1,081.46 | 1,552.04 | 2,227.38 |
|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 28.10 | -2.68 | -355.26 | 70 | -135 | -193.74 | -278.05 | -399.04 | -572.67 |
| EBIT | 14.16 | -17.21 | -365.57 | 58.42 | -171.36 | -245.93 | -352.94 | -506.52 | -726.92 |
| Tax Rate | 44.19% | 24.19% | 0.59% | 1.44% | 17.60% | 17.60% | 17.60% | 17.60% | 17.60% |
| EBIAT | 7.90 | -13.05 | -363.40 | 57.58 | -141.20 | -202.64 | -290.81 | -417.36 | -598.96 |
| Depreciation | 13.94 | 14.53 | 10.31 | 11.58 | 36.36 | 52.19 | 74.89 | 107.48 | 154.25 |
| Accounts Receivable | - | 0.53 | -28.24 | -25.07 | -21.15 | -42.49 | -60.98 | -87.51 | -125.59 |
| Inventories | - | -3.77 | -12.06 | -81.17 | 15.97 | -43.71 | -62.73 | -90.03 | -129.20 |
| Accounts Payable | - | 4.23 | 10.56 | 1.29 | 26.82 | 24.87 | 35.69 | 51.22 | 73.51 |
| Capital Expenditure | -10.42 | -3.82 | 0.32 | 0.09 | -12.22 | -17.54 | -25.18 | -36.13 | -51.85 |
| UFCF | 11.42 | -1.34 | -382.50 | -35.70 | -95.42 | -229.33 | -329.11 | -472.32 | -677.85 |
| WACC | |||||||||
| PV UFCF | -95.42 | -214.85 | -288.86 | -388.38 | -522.18 | ||||
| SUM PV UFCF | -1,414.36 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.74 |
| Free cash flow (t + 1) | -691.40 |
| Terminal Value | -14,586.58 |
| Present Value of Terminal Value | -10,527.31 |
Intrinsic Value
| Enterprise Value | -11,941.68 |
|---|---|
| Net Debt | 183.59 |
| Equity Value | -12,125.27 |
| Shares Outstanding | 148.51 |
| Equity Value Per Share | -81.65 |