Discounted Cash Flow (DCF) Analysis Unlevered

UTStarcom Holdings Corp. (UTSI)

$3.7122

+0.27 (+7.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.17 | 3.7122 | undervalue

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 115.9465.8224.3115.9214.028.675.363.312.051.27
Revenue (%)
EBITDA 5.72-5.19-21.64-4.86-3.07-2.50-1.55-0.96-0.59-0.37
EBITDA (%)
EBIT 5.02-5.83-22.21-5.23-4.49-2.79-1.72-1.07-0.66-0.41
EBIT (%)
Depreciation 0.700.640.570.371.430.280.180.110.070.04
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 57.0537.0636.3253.8054.5017.0210.526.504.022.49
Total Cash (%)
Account Receivables 60.9578.0349.6827.5511.4910.936.764.182.581.60
Account Receivables (%)
Inventories 26.826.656.711.561.811.450.890.550.340.21
Inventories (%)
Accounts Payable 50.7630.8825.1218.9912.977.044.352.691.661.03
Accounts Payable (%)
Capital Expenditure -0.22-0.51-0.11-0.35-0.25-0.09-0.06-0.04-0.02-0.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 3.7,122
Beta 0.738
Diluted Shares Outstanding 9.06
Cost of Debt
Tax Rate -67.77
After-tax Cost of Debt -46.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.080
Total Debt 3.12
Total Equity 33.62
Total Capital 36.74
Debt Weighting 8.50
Equity Weighting 91.50
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 115.9465.8224.3115.9214.028.675.363.312.051.27
EBITDA 5.72-5.19-21.64-4.86-3.07-2.50-1.55-0.96-0.59-0.37
EBIT 5.02-5.83-22.21-5.23-4.49-2.79-1.72-1.07-0.66-0.41
Tax Rate -8.01%4.09%7.00%-153.69%-67.77%-43.68%-43.68%-43.68%-43.68%-43.68%
EBIAT 5.42-5.60-20.66-13.27-7.54-4.01-2.48-1.53-0.95-0.59
Depreciation 0.700.640.570.371.430.280.180.110.070.04
Accounts Receivable --17.0928.3522.1316.060.564.172.581.600.99
Inventories -20.17-0.065.15-0.250.360.550.340.210.13
Accounts Payable --19.88-5.75-6.13-6.01-5.94-2.69-1.66-1.03-0.63
Capital Expenditure -0.23-0.51-0.12-0.35-0.25-0.09-0.06-0.04-0.02-0.01
UFCF 5.90-22.252.337.903.43-8.83-0.32-0.20-0.12-0.08
WACC
PV UFCF -8.54-0.30-0.18-0.11-0.06
SUM PV UFCF -9.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.45
Free cash flow (t + 1) -0.08
Terminal Value -5.29
Present Value of Terminal Value -4.46

Intrinsic Value

Enterprise Value -13.64
Net Debt -51.38
Equity Value 37.73
Shares Outstanding 9.06
Equity Value Per Share 4.17