Discounted Cash Flow (DCF) Analysis Unlevered

Sonic Foundry, Inc. (SOFO)

$1.23

-0.02 (-1.60%)
All numbers are in Millions, Currency in USD
Stock DCF: -53.41 | 1.23 | 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 3634.5434.7834.7535.1734.9734.7734.5834.3834.19
Revenue (%)
EBITDA -2.65-14.16-1.351.754.45-2.42-2.40-2.39-2.37-2.36
EBITDA (%)
EBIT -4.62-15.90-2.630.633.14-3.89-3.87-3.85-3.83-3.81
EBIT (%)
Depreciation 1.981.741.281.121.311.481.471.461.451.45
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 1.361.344.467.8910.285.075.045.014.984.95
Total Cash (%)
Account Receivables 8.837.526.536.255.466.896.866.826.786.74
Account Receivables (%)
Inventories 0.991.030.561.170.440.830.830.830.820.82
Inventories (%)
Accounts Payable 1.311.610.842.691.071.511.501.491.481.47
Accounts Payable (%)
Capital Expenditure -0.84-0.84-0.43-1.74-1.48-1.06-1.06-1.05-1.05-1.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 1.23
Beta 0.028
Diluted Shares Outstanding 8.65
Cost of Debt
Tax Rate 0.49
After-tax Cost of Debt 1.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.934
Total Debt 3.17
Total Equity 10.64
Total Capital 13.81
Debt Weighting 22.98
Equity Weighting 77.02
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 3634.5434.7834.7535.1734.9734.7734.5834.3834.19
EBITDA -2.65-14.16-1.351.754.45-2.42-2.40-2.39-2.37-2.36
EBIT -4.62-15.90-2.630.633.14-3.89-3.87-3.85-3.83-3.81
Tax Rate 1.54%26.26%-2.56%-477.42%0.49%-90.34%-90.34%-90.34%-90.34%-90.34%
EBIAT -4.55-11.72-2.693.623.12-7.41-7.37-7.33-7.29-7.25
Depreciation 1.981.741.281.121.311.481.471.461.451.45
Accounts Receivable -1.310.990.280.79-1.430.040.040.040.04
Inventories --0.040.47-0.610.72-0.390000
Accounts Payable -0.30-0.771.85-1.620.43-0.01-0.01-0.01-0.01
Capital Expenditure -0.84-0.84-0.43-1.74-1.48-1.06-1.06-1.05-1.05-1.04
UFCF -3.41-9.26-1.164.522.85-8.39-6.92-6.88-6.85-6.81
WACC
PV UFCF -8.12-6.48-6.24-6-5.77
SUM PV UFCF -32.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.35
Free cash flow (t + 1) -6.94
Terminal Value -514.35
Present Value of Terminal Value -436.22

Intrinsic Value

Enterprise Value -468.84
Net Debt -6.82
Equity Value -462.02
Shares Outstanding 8.65
Equity Value Per Share -53.41