Discounted Cash Flow (DCF) Analysis Unlevered
UTStarcom Holdings Corp. (UTSI)
$3.7122
+0.27 (+7.91%)
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 | 115.94 | 65.82 | 24.31 | 15.92 | 14.02 | 8.67 | 5.36 | 3.31 | 2.05 | 1.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.70 | 0.64 | 0.57 | 0.37 | 1.43 | 0.28 | 0.18 | 0.11 | 0.07 | 0.04 |
| 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 | 57.05 | 37.06 | 36.32 | 53.80 | 54.50 | 17.02 | 10.52 | 6.50 | 4.02 | 2.49 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 60.95 | 78.03 | 49.68 | 27.55 | 11.49 | 10.93 | 6.76 | 4.18 | 2.58 | 1.60 |
| Account Receivables (%) | ||||||||||
| Inventories | 26.82 | 6.65 | 6.71 | 1.56 | 1.81 | 1.45 | 0.89 | 0.55 | 0.34 | 0.21 |
| Inventories (%) | ||||||||||
| Accounts Payable | 50.76 | 30.88 | 25.12 | 18.99 | 12.97 | 7.04 | 4.35 | 2.69 | 1.66 | 1.03 |
| 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 | 115.94 | 65.82 | 24.31 | 15.92 | 14.02 | 8.67 | 5.36 | 3.31 | 2.05 | 1.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.70 | 0.64 | 0.57 | 0.37 | 1.43 | 0.28 | 0.18 | 0.11 | 0.07 | 0.04 |
| Accounts Receivable | - | -17.09 | 28.35 | 22.13 | 16.06 | 0.56 | 4.17 | 2.58 | 1.60 | 0.99 |
| Inventories | - | 20.17 | -0.06 | 5.15 | -0.25 | 0.36 | 0.55 | 0.34 | 0.21 | 0.13 |
| 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 | -22.25 | 2.33 | 7.90 | 3.43 | -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 |