Discounted Cash Flow (DCF) Analysis Unlevered

Surface Oncology, Inc. (SURF)

$0.798

-0.00 (-0.25%)

All numbers are in Millions, Currency in USD

Stock DCF: -58,905.32 | 0.798 | 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	59.42	15.36	126.16	2.69	30	147.44	724.59	3,561.09	17,501.26	86,011.49
Revenue (%)
EBITDA	-5.25	-53	63.26	-74.37	-60.44	-965.13	-4,743.22	-23,310.96	-114,563.74	-563,033.52
EBITDA (%)
EBIT	-6.60	-54.79	61.59	-75.94	-60.44	-986.83	-4,849.88	-23,835.18	-117,140.07	-575,695.11
EBIT (%)
Depreciation	1.35	1.79	1.67	1.57	0	21.70	106.67	524.22	2,576.33	12,661.60
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	158.83	105.16	175.14	154.15	124.82	2,135.99	10,497.51	51,590.93	253,548.12	1,246,084.40
Total Cash (%)
Account Receivables	0.32	0.34	2.57	0.04	0.48	2.34	11.52	56.61	278.21	1,367.29
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	3.41	3.38	1.67	0.26	2.91	14.30	70.29	345.43	1,697.66	8,343.28
Accounts Payable (%)
Capital Expenditure	-2.02	-1.54	-0.04	-0.12	-0	-5.28	-25.96	-127.57	-626.93	-3,081.12
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 0.798
Beta	1.683
Diluted Shares Outstanding	55.76
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	10.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.644
Total Debt	30.45
Total Equity	44.50
Total Capital	74.95
Debt Weighting	40.63
Equity Weighting	59.37
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	59.42	15.36	126.16	2.69	30	147.44	724.59	3,561.09	17,501.26	86,011.49
EBITDA	-5.25	-53	63.26	-74.37	-60.44	-965.13	-4,743.22	-23,310.96	-114,563.74	-563,033.52
EBIT	-6.60	-54.79	61.59	-75.94	-60.44	-986.83	-4,849.88	-23,835.18	-117,140.07	-575,695.11
Tax Rate	0.00%	0.00%	0.00%	100.00%	0.00%	20.00%	20.00%	20.00%	20.00%	20.00%
EBIAT	-6.60	-54.79	61.59	-	-60.44	-789.47	-3,879.91	-19,068.14	-93,712.06	-460,556.09
Depreciation	1.35	1.79	1.67	1.57	0	21.70	106.67	524.22	2,576.33	12,661.60
Accounts Receivable	-	-0.01	-2.23	2.53	-0.43	-1.87	-9.17	-45.09	-221.60	-1,089.08
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-0.03	-1.71	-1.41	2.65	11.39	55.99	275.15	1,352.22	6,645.62
Capital Expenditure	-2.02	-1.54	-0.04	-0.12	-0	-5.28	-25.96	-127.57	-626.93	-3,081.12
UFCF	-7.27	-54.58	59.27	2.56	-58.22	-763.52	-3,752.39	-18,441.43	-90,632.04	-445,419.06
WACC
PV UFCF						-687.18	-3,039.49	-13,444.21	-59,466.06	-263,028.65
SUM PV UFCF										-339,665.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.11
Free cash flow (t + 1)	-454,327.45
Terminal Value	-4,987,128.93
Present Value of Terminal Value	-2,944,997.01

Intrinsic Value

Enterprise Value	-3,284,662.60
Net Debt	-20.46
Equity Value	-3,284,642.14
Shares Outstanding	55.76
Equity Value Per Share	-58,905.32