Discounted Cash Flow (DCF) Analysis Unlevered

Startek, Inc. (SRT)

$3.45

-0.07 (-1.99%)
All numbers are in Millions, Currency in USD
Stock DCF: -105.29 | 3.45 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 292.60420.32657.91640.22848.261,123.911,489.121,973.022,614.163,463.63
Revenue (%)
EBITDA 10.98-10.4233.618.2216.2521.5328.5337.8050.0866.35
EBITDA (%)
EBIT -0.10-30.883.88-19.99-21.03-27.86-36.91-48.90-64.80-85.85
EBIT (%)
Depreciation 11.0820.4629.7228.2037.2849.3965.4486.70114.88152.21
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 1.4616.6220.4644.5147.9445.3360.0679.57105.43139.69
Total Cash (%)
Account Receivables 53.05149.97149.93133.34206.61273.75362.70480.56636.72843.63
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 7.0226.8925.4520.0733.5044.3958.8277.93103.25136.81
Accounts Payable (%)
Capital Expenditure -7.18-7.69-15.56-17.41-19.87-26.33-34.89-46.22-61.24-81.14
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 3.45
Beta 1.292
Diluted Shares Outstanding 41.09
Cost of Debt
Tax Rate -33.00
After-tax Cost of Debt 4.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.927
Total Debt 238.68
Total Equity 141.77
Total Capital 380.46
Debt Weighting 62.74
Equity Weighting 37.26
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 292.60420.32657.91640.22848.261,123.911,489.121,973.022,614.163,463.63
EBITDA 10.98-10.4233.618.2216.2521.5328.5337.8050.0866.35
EBIT -0.10-30.883.88-19.99-21.03-27.86-36.91-48.90-64.80-85.85
Tax Rate 25.47%-29.97%-76.89%-50.61%-33.00%-33.00%-33.00%-33.00%-33.00%-33.00%
EBIAT -0.08-40.146.87-30.10-27.96-37.05-49.09-65.04-86.18-114.18
Depreciation 11.0820.4629.7228.2037.2849.3965.4486.70114.88152.21
Accounts Receivable --96.920.0416.59-73.27-67.14-88.95-117.86-156.16-206.90
Inventories ----------
Accounts Payable -19.87-1.44-5.3713.4310.8914.4319.1125.3233.55
Capital Expenditure -7.18-7.69-15.56-17.41-19.87-26.33-34.89-46.22-61.24-81.14
UFCF 3.82-104.4219.63-8.10-70.40-70.24-93.07-123.31-163.38-216.47
WACC
PV UFCF -70.40-65.97-82.09-102.14-127.10-158.15
SUM PV UFCF -535.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.48
Free cash flow (t + 1) -220.80
Terminal Value -4,928.63
Present Value of Terminal Value -3,600.69

Intrinsic Value

Enterprise Value -4,136.13
Net Debt 190.74
Equity Value -4,326.88
Shares Outstanding 41.09
Equity Value Per Share -105.29