Discounted Cash Flow (DCF) Analysis Unlevered

TESSCO Technologies Incorporated (TESS)

$5.631

-0.04 (-0.69%)
All numbers are in Millions, Currency in USD
Stock DCF: -16.15 | 5.631 | 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 580.27606.81540.30373.34417.54390.98366.10342.81321300.58
Revenue (%)
EBITDA 11.8911.76-24.13-8.42-2.90-2.68-2.51-2.35-2.20-2.06
EBITDA (%)
EBIT 7.908.15-28.16-12.16-5.38-5.52-5.16-4.84-4.53-4.24
EBIT (%)
Depreciation 3.993.624.033.742.482.842.662.492.332.18
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 0.020.030.051.111.750.570.540.500.470.44
Total Cash (%)
Account Receivables 87.8693.9782.8780.4882.9668.3363.9959.9256.1052.53
Account Receivables (%)
Inventories 72.3271.8569.1553.0655.9550.6047.3844.3741.5538.90
Inventories (%)
Accounts Payable 67.0473.0675.5159.4265.2554.0450.6047.3944.3741.55
Accounts Payable (%)
Capital Expenditure -3.54-5.16-6.85-11.86-9.50-6.40-5.99-5.61-5.25-4.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 5.631
Beta 0.937
Diluted Shares Outstanding 8.93
Cost of Debt
Tax Rate 38.39
After-tax Cost of Debt 1.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.226
Total Debt 52.56
Total Equity 50.27
Total Capital 102.84
Debt Weighting 51.11
Equity Weighting 48.89
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 580.27606.81540.30373.34417.54390.98366.10342.81321300.58
EBITDA 11.8911.76-24.13-8.42-2.90-2.68-2.51-2.35-2.20-2.06
EBIT 7.908.15-28.16-12.16-5.38-5.52-5.16-4.84-4.53-4.24
Tax Rate 30.47%23.94%26.32%52.01%38.39%34.23%34.23%34.23%34.23%34.23%
EBIAT 5.496.20-20.75-5.84-3.31-3.63-3.40-3.18-2.98-2.79
Depreciation 3.993.624.033.742.482.842.662.492.332.18
Accounts Receivable --6.1011.102.39-2.4814.624.354.073.813.57
Inventories -0.482.7016.09-2.895.343.223.012.822.64
Accounts Payable -6.022.45-16.105.84-11.21-3.44-3.22-3.01-2.82
Capital Expenditure -3.54-5.16-6.85-11.86-9.50-6.40-5.99-5.61-5.25-4.92
UFCF 5.955.04-7.32-11.57-9.861.57-2.60-2.44-2.28-2.14
WACC
PV UFCF 1.51-2.40-2.16-1.94-1.75
SUM PV UFCF -6.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.06
Free cash flow (t + 1) -2.18
Terminal Value -105.73
Present Value of Terminal Value -86.65

Intrinsic Value

Enterprise Value -93.41
Net Debt 50.81
Equity Value -144.21
Shares Outstanding 8.93
Equity Value Per Share -16.15