Discounted Cash Flow (DCF) Analysis Unlevered
UTStarcom Holdings Corp. (UTSI)
$3.59
-0.03 (-0.83%)
All numbers are in Millions, Currency in USD
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 | 98.29 | 115.94 | 65.62 | 24.31 | 15.92 | 11.03 | 7.64 | 5.29 | 3.67 | 2.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 8.92 | 5.19 | -3.28 | -24.88 | -1.03 | -2.21 | -1.53 | -1.06 | -0.73 | -0.51 |
| EBITDA (%) | ||||||||||
| EBIT | 8.29 | 4.49 | -3.93 | -25.45 | -1.40 | -2.36 | -1.64 | -1.13 | -0.79 | -0.54 |
| EBIT (%) | ||||||||||
| Depreciation | 0.63 | 0.70 | 0.64 | 0.57 | 0.37 | 0.15 | 0.11 | 0.07 | 0.05 | 0.04 |
| 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 | 82.89 | 57.05 | 37.06 | 36.32 | 53.80 | 14.94 | 10.35 | 7.17 | 4.97 | 3.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 17.89 | 61.46 | 79.19 | 50.73 | 28.35 | 12.76 | 8.84 | 6.13 | 4.24 | 2.94 |
| Account Receivables (%) | ||||||||||
| Inventories | 17.14 | 26.39 | 6.14 | 6.70 | 1.54 | 1.91 | 1.33 | 0.92 | 0.64 | 0.44 |
| Inventories (%) | ||||||||||
| Accounts Payable | 27.45 | 50.76 | 30.87 | 25.12 | 19.03 | 7.54 | 5.22 | 3.62 | 2.51 | 1.74 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.73 | -0.22 | -0.51 | -0.11 | -0.35 | -0.10 | -0.07 | -0.05 | -0.03 | -0.02 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 3.59 |
|---|---|
| Beta | 0.742 |
| Diluted Shares Outstanding | 9.01 |
| Cost of Debt | |
| Tax Rate | -129.99 |
| After-tax Cost of Debt | 23.15% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.170 |
| Total Debt | 4.91 |
| Total Equity | 32.33 |
| Total Capital | 37.24 |
| Debt Weighting | 13.18 |
| Equity Weighting | 86.82 |
| 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 | 98.29 | 115.94 | 65.62 | 24.31 | 15.92 | 11.03 | 7.64 | 5.29 | 3.67 | 2.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 8.92 | 5.19 | -3.28 | -24.88 | -1.03 | -2.21 | -1.53 | -1.06 | -0.73 | -0.51 |
| EBIT | 8.29 | 4.49 | -3.93 | -25.45 | -1.40 | -2.36 | -1.64 | -1.13 | -0.79 | -0.54 |
| Tax Rate | 15.32% | -8.51% | 0.79% | 7.00% | -129.99% | -23.08% | -23.08% | -23.08% | -23.08% | -23.08% |
| EBIAT | 7.02 | 4.87 | -3.90 | -23.67 | -3.22 | -2.91 | -2.01 | -1.40 | -0.97 | -0.67 |
| Depreciation | 0.63 | 0.70 | 0.64 | 0.57 | 0.37 | 0.15 | 0.11 | 0.07 | 0.05 | 0.04 |
| Accounts Receivable | - | -43.57 | -17.73 | 28.46 | 22.39 | 15.59 | 3.92 | 2.72 | 1.88 | 1.30 |
| Inventories | - | -9.25 | 20.25 | -0.55 | 5.16 | -0.38 | 0.59 | 0.41 | 0.28 | 0.20 |
| Accounts Payable | - | 23.30 | -19.88 | -5.75 | -6.09 | -11.50 | -2.32 | -1.60 | -1.11 | -0.77 |
| Capital Expenditure | -0.73 | -0.23 | -0.51 | -0.12 | -0.35 | -0.10 | -0.07 | -0.05 | -0.03 | -0.02 |
| UFCF | 6.92 | -24.16 | -21.13 | -1.06 | 18.26 | 0.86 | 0.22 | 0.15 | 0.10 | 0.07 |
| WACC | ||||||||||
| PV UFCF | 0.79 | 0.18 | 0.12 | 0.07 | 0.05 | |||||
| SUM PV UFCF | 1.21 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.28 |
| Free cash flow (t + 1) | 0.07 |
| Terminal Value | 1.02 |
| Present Value of Terminal Value | 0.65 |
Intrinsic Value
| Enterprise Value | 1.86 |
|---|---|
| Net Debt | -48.89 |
| Equity Value | 50.75 |
| Shares Outstanding | 9.01 |
| Equity Value Per Share | 5.63 |