Discounted Cash Flow (DCF) Analysis Unlevered
TESSCO Technologies Incorporated (TESS)
$5.631
-0.04 (-0.69%)
All numbers are in Millions, Currency in USD
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 | 580.27 | 606.81 | 540.30 | 373.34 | 417.54 | 390.98 | 366.10 | 342.81 | 321 | 300.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 11.89 | 11.76 | -24.13 | -8.42 | -2.90 | -2.68 | -2.51 | -2.35 | -2.20 | -2.06 |
| EBITDA (%) | ||||||||||
| EBIT | 7.90 | 8.15 | -28.16 | -12.16 | -5.38 | -5.52 | -5.16 | -4.84 | -4.53 | -4.24 |
| EBIT (%) | ||||||||||
| Depreciation | 3.99 | 3.62 | 4.03 | 3.74 | 2.48 | 2.84 | 2.66 | 2.49 | 2.33 | 2.18 |
| 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 | 0.02 | 0.03 | 0.05 | 1.11 | 1.75 | 0.57 | 0.54 | 0.50 | 0.47 | 0.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 87.86 | 93.97 | 82.87 | 80.48 | 82.96 | 68.33 | 63.99 | 59.92 | 56.10 | 52.53 |
| Account Receivables (%) | ||||||||||
| Inventories | 72.32 | 71.85 | 69.15 | 53.06 | 55.95 | 50.60 | 47.38 | 44.37 | 41.55 | 38.90 |
| Inventories (%) | ||||||||||
| Accounts Payable | 67.04 | 73.06 | 75.51 | 59.42 | 65.25 | 54.04 | 50.60 | 47.39 | 44.37 | 41.55 |
| 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 | 580.27 | 606.81 | 540.30 | 373.34 | 417.54 | 390.98 | 366.10 | 342.81 | 321 | 300.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 11.89 | 11.76 | -24.13 | -8.42 | -2.90 | -2.68 | -2.51 | -2.35 | -2.20 | -2.06 |
| EBIT | 7.90 | 8.15 | -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 | 5.49 | 6.20 | -20.75 | -5.84 | -3.31 | -3.63 | -3.40 | -3.18 | -2.98 | -2.79 |
| Depreciation | 3.99 | 3.62 | 4.03 | 3.74 | 2.48 | 2.84 | 2.66 | 2.49 | 2.33 | 2.18 |
| Accounts Receivable | - | -6.10 | 11.10 | 2.39 | -2.48 | 14.62 | 4.35 | 4.07 | 3.81 | 3.57 |
| Inventories | - | 0.48 | 2.70 | 16.09 | -2.89 | 5.34 | 3.22 | 3.01 | 2.82 | 2.64 |
| Accounts Payable | - | 6.02 | 2.45 | -16.10 | 5.84 | -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 | 5.95 | 5.04 | -7.32 | -11.57 | -9.86 | 1.57 | -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 |