Discounted Cash Flow (DCF) Analysis Unlevered

The E.W. Scripps Company (SSP)

$8.31

+0.42 (+5.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 223.79 | 8.31 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,423.84	1,857.48	2,283.53	2,453.22	2,950.59	3,548.82	4,268.33	5,133.71	6,174.55	7,426.42
Revenue (%)
EBITDA	146.71	524.94	520.99	226.85	520.98	626.60	753.64	906.44	1,090.22	1,311.26
EBITDA (%)
EBIT	59.72	417.78	359.06	387.29	429.29	516.33	621.01	746.92	898.36	1,080.50
EBIT (%)
Depreciation	86.99	107.16	161.92	-160.43	91.68	110.27	132.63	159.52	191.86	230.76
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	32.97	576.02	66.22	18.03	16.48	266.30	320.29	385.23	463.33	557.27
Total Cash (%)
Account Receivables	443.22	441.38	573.30	600.10	770.53	926.76	1,114.65	1,340.65	1,612.46	1,939.38
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	29.15	68.14	83.93	82.71	78.25	109.41	131.59	158.27	190.36	228.95
Accounts Payable (%)
Capital Expenditure	-85.91	-46.83	-61.17	2.25	-82.19	-98.85	-118.89	-143	-171.99	-206.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 8.31
Beta	1.813
Diluted Shares Outstanding	87.35
Cost of Debt
Tax Rate	47.34
After-tax Cost of Debt	2.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.255
Total Debt	2,890.17
Total Equity	725.85
Total Capital	3,616.01
Debt Weighting	79.93
Equity Weighting	20.07
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	2028 Projected
Revenue	1,423.84	1,857.48	2,283.53	2,453.22	2,950.59	3,548.82	4,268.33	5,133.71	6,174.55	7,426.42
EBITDA	146.71	524.94	520.99	226.85	520.98	626.60	753.64	906.44	1,090.22	1,311.26
EBIT	59.72	417.78	359.06	387.29	429.29	516.33	621.01	746.92	898.36	1,080.50
Tax Rate	11.96%	-28.86%	34.41%	47.34%	16.21%	16.21%	16.21%	16.21%	16.21%	16.21%
EBIAT	52.58	538.33	235.51	203.96	359.69	432.62	520.33	625.82	752.71	905.32
Depreciation	86.99	107.16	161.92	-160.43	91.68	110.27	132.63	159.52	191.86	230.76
Accounts Receivable	-	1.84	-131.92	-26.80	-170.44	-156.22	-187.90	-225.99	-271.81	-326.92
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	38.99	15.79	-1.22	-4.46	31.16	22.18	26.68	32.09	38.59
Capital Expenditure	-85.91	-46.83	-61.17	2.25	-82.19	-98.85	-118.89	-143	-171.99	-206.86
UFCF	53.66	639.48	220.13	17.76	194.29	318.98	368.35	443.03	532.86	640.89
WACC
PV UFCF					194.29	305.07	336.92	387.56	445.81	512.81
SUM PV UFCF										1,988.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.56
Free cash flow (t + 1)	653.71
Terminal Value	25,535.60
Present Value of Terminal Value	20,432.34

Intrinsic Value

Enterprise Value	22,420.52
Net Debt	2,873.69
Equity Value	19,546.82
Shares Outstanding	87.35
Equity Value Per Share	223.79