Discounted Cash Flow (DCF) Analysis Unlevered

Sutro Biopharma, Inc. (STRO)

$5.55

+0.12 (+2.21%)
All numbers are in Millions, Currency in USD
Stock DCF: -46.32 | 5.55 | 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 51.7438.4242.7442.7261.8866.5771.6177.0382.8789.15
Revenue (%)
EBITDA -14.09-29.16-50.97-23.75-100.69-58.67-63.12-67.90-73.04-78.57
EBITDA (%)
EBIT -19.08-33.69-55.74-28.05-105.54-65.40-70.35-75.68-81.41-87.58
EBIT (%)
Depreciation 4.994.544.784.304.846.737.247.788.379.01
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 22.02204.49117.86368.14197.94270.56291.05313.10336.81362.33
Total Cash (%)
Account Receivables 1.622.496.305.5612.457.658.238.869.5310.25
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 2.903.065.585.5411.337.718.308.929.6010.33
Accounts Payable (%)
Capital Expenditure -3.32-1.56-3.48-7.13-15.32-8-8.60-9.25-9.95-10.71
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 5.55
Beta 0.930
Diluted Shares Outstanding 32.57
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.195
Total Debt 57.37
Total Equity 180.78
Total Capital 238.16
Debt Weighting 24.09
Equity Weighting 75.91
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 51.7438.4242.7442.7261.8866.5771.6177.0382.8789.15
EBITDA -14.09-29.16-50.97-23.75-100.69-58.67-63.12-67.90-73.04-78.57
EBIT -19.08-33.69-55.74-28.05-105.54-65.40-70.35-75.68-81.41-87.58
Tax Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
EBIAT -19.08-33.69-55.74-28.05-105.54-65.40-70.35-75.68-81.41-87.58
Depreciation 4.994.544.784.304.846.737.247.788.379.01
Accounts Receivable --0.86-3.810.74-6.894.80-0.58-0.62-0.67-0.72
Inventories ----------
Accounts Payable -0.162.52-0.045.78-3.620.580.630.680.73
Capital Expenditure -3.32-1.56-3.48-7.13-15.32-8-8.60-9.25-9.95-10.71
UFCF -17.40-31.42-55.73-30.18-117.13-65.48-71.71-77.15-82.99-89.28
WACC
PV UFCF -60.95-62.14-62.22-62.30-62.39
SUM PV UFCF -310.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.43
Free cash flow (t + 1) -91.06
Terminal Value -1,677
Present Value of Terminal Value -1,171.94

Intrinsic Value

Enterprise Value -1,481.95
Net Debt 26.96
Equity Value -1,508.91
Shares Outstanding 32.57
Equity Value Per Share -46.32