Discounted Cash Flow (DCF) Analysis Unlevered

The E.W. Scripps Company (SSP)

$5.89

-0.17 (-2.81%)

All numbers are in Millions, Currency in USD

Stock DCF: -32.89 | 5.89 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,208.42	1,351.40	1,857.48	2,283.53	2,453.22	2,941.70	3,527.45	4,229.83	5,072.08	6,082.03
Revenue (%)
EBITDA	188.64	193.93	428.51	566.39	596.95	601.08	720.77	864.29	1,036.39	1,242.75
EBITDA (%)
EBIT	124.65	109.58	321.35	404.47	436.51	419.07	502.52	602.58	722.57	866.45
EBIT (%)
Depreciation	63.99	84.34	107.16	161.92	160.43	182.01	218.25	261.71	313.82	376.30
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	107.11	32.97	576.02	66.22	18.03	270.34	324.17	388.72	466.12	558.93
Total Cash (%)
Account Receivables	300.57	417.50	441.38	573.30	600.10	759.53	910.76	1,092.11	1,309.58	1,570.34
Account Receivables (%)
Inventories	-300.57	101.27	1,050	-539.04	-600.10	-52.47	-62.92	-75.45	-90.47	-108.49
Inventories (%)
Accounts Payable	26.92	28.44	68.14	83.93	82.71	88.53	106.16	127.30	152.64	183.04
Accounts Payable (%)
Capital Expenditure	-60.48	-85.80	-46.83	-61.17	-45.79	-108.38	-129.96	-155.83	-186.86	-224.07
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 5.89
Beta	1.862
Diluted Shares Outstanding	87.35
Cost of Debt
Tax Rate	29.14
After-tax Cost of Debt	3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.331
Total Debt	2,872.41
Total Equity	514.47
Total Capital	3,386.87
Debt Weighting	84.81
Equity Weighting	15.19
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,208.42	1,351.40	1,857.48	2,283.53	2,453.22	2,941.70	3,527.45	4,229.83	5,072.08	6,082.03
EBITDA	188.64	193.93	428.51	566.39	596.95	601.08	720.77	864.29	1,036.39	1,242.75
EBIT	124.65	109.58	321.35	404.47	436.51	419.07	502.52	602.58	722.57	866.45
Tax Rate	72.52%	290.54%	26.53%	34.41%	29.14%	90.63%	90.63%	90.63%	90.63%	90.63%
EBIAT	34.25	-208.80	236.09	265.29	309.31	39.27	47.09	56.47	67.72	81.20
Depreciation	63.99	84.34	107.16	161.92	160.43	182.01	218.25	261.71	313.82	376.30
Accounts Receivable	-	-116.93	-23.88	-131.92	-26.80	-159.43	-151.24	-181.35	-217.46	-260.76
Inventories	-	-401.84	-948.73	1,589.04	61.06	-547.63	10.45	12.53	15.02	18.01
Accounts Payable	-	1.52	39.70	15.79	-1.22	5.82	17.63	21.14	25.35	30.39
Capital Expenditure	-60.48	-85.80	-46.83	-61.17	-45.79	-108.38	-129.96	-155.83	-186.86	-224.07
UFCF	37.75	-727.49	-636.50	1,838.96	456.99	-588.33	12.23	14.66	17.58	21.08
WACC
PV UFCF						-558.19	11.01	12.52	14.24	16.21
SUM PV UFCF										-504.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.40
Free cash flow (t + 1)	21.50
Terminal Value	632.41
Present Value of Terminal Value	486.18

Intrinsic Value

Enterprise Value	-18.03
Net Debt	2,854.38
Equity Value	-2,872.41
Shares Outstanding	87.35
Equity Value Per Share	-32.89