Discounted Cash Flow (DCF) Analysis Unlevered
The Stephan Co. (SPCO)
$1.75
-0.15 (-7.89%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Projected | 2017 Projected | 2018 Projected | 2019 Projected | 2020 Projected |
| Revenue | 12.84 | 8.84 | 8.01 | 6.39 | 5.09 | 4.06 | 3.24 | 2.58 |
|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||
| EBITDA | -3.21 | -2.65 | -0.59 | -1.33 | -1.06 | -0.84 | -0.67 | -0.54 |
| EBITDA (%) | ||||||||
| EBIT | -3.33 | -2.66 | -0.63 | -1.36 | -1.09 | -0.87 | -0.69 | -0.55 |
| EBIT (%) | ||||||||
| Depreciation | 0.11 | 0.02 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.01 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Projected | 2017 Projected | 2018 Projected | 2019 Projected | 2020 Projected |
| Total Cash | 1.96 | 1.72 | 1.09 | 1.03 | 0.82 | 0.65 | 0.52 | 0.42 |
|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||
| Account Receivables | 0.48 | 0.15 | 0.22 | 0.17 | 0.14 | 0.11 | 0.09 | 0.07 |
| Account Receivables (%) | ||||||||
| Inventories | 2.15 | 0.91 | 0.77 | 0.78 | 0.62 | 0.50 | 0.40 | 0.32 |
| Inventories (%) | ||||||||
| Accounts Payable | - | 0.04 | 0.22 | 0.10 | 0.08 | 0.07 | 0.05 | 0.04 |
| Accounts Payable (%) | ||||||||
| Capital Expenditure | -0.20 | -0.10 | -0.13 | -0.09 | -0.07 | -0.06 | -0.05 | -0.04 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.75 |
|---|---|
| Beta | 0.363 |
| Diluted Shares Outstanding | 4.05 |
| Cost of Debt | |
| Tax Rate | 50.16 |
| After-tax Cost of Debt | 2.49% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.212 |
| Total Debt | - |
| Total Equity | 7.09 |
| Total Capital | 7.09 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| Wacc |
Build Up Free Cash
Year A/P | 2013 Actual | 2014 Actual | 2015 Actual | 2016 Projected | 2017 Projected | 2018 Projected | 2019 Projected | 2020 Projected |
| Revenue | 12.84 | 8.84 | 8.01 | 6.39 | 5.09 | 4.06 | 3.24 | 2.58 |
|---|---|---|---|---|---|---|---|---|
| EBITDA | -3.21 | -2.65 | -0.59 | -1.33 | -1.06 | -0.84 | -0.67 | -0.54 |
| EBIT | -3.33 | -2.66 | -0.63 | -1.36 | -1.09 | -0.87 | -0.69 | -0.55 |
| Tax Rate | -21.35% | -576.37% | 50.16% | -182.52% | -182.52% | -182.52% | -182.52% | -182.52% |
| EBIAT | -4.04 | -18.03 | -0.31 | -3.85 | -3.07 | -2.44 | -1.95 | -1.55 |
| Depreciation | 0.11 | 0.02 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.01 |
| Accounts Receivable | - | 0.34 | -0.08 | 0.05 | 0.04 | 0.03 | 0.02 | 0.02 |
| Inventories | - | 1.24 | 0.14 | -0.01 | 0.16 | 0.13 | 0.10 | 0.08 |
| Accounts Payable | - | - | 0.18 | -0.12 | -0.02 | -0.02 | -0.01 | -0.01 |
| Capital Expenditure | -0.20 | -0.10 | -0.13 | -0.09 | -0.07 | -0.06 | -0.05 | -0.04 |
| UFCF | -4.12 | -16.53 | -0.17 | -3.99 | -2.94 | -2.35 | -1.87 | -1.49 |
| WACC | ||||||||
| PV UFCF | -4.19 | -2.94 | -2.23 | -1.69 | -1.28 | |||
| SUM PV UFCF | -11.14 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.21 |
| Free cash flow (t + 1) | -1.52 |
| Terminal Value | -47.40 |
| Present Value of Terminal Value | -36.77 |
Intrinsic Value
| Enterprise Value | -47.91 |
|---|---|
| Net Debt | -1.09 |
| Equity Value | -46.82 |
| Shares Outstanding | 4.05 |
| Equity Value Per Share | -11.56 |