Discounted Cash Flow (DCF) Analysis Unlevered

UTStarcom Holdings Corp. (UTSI)

$3.59

-0.03 (-0.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 5.63 | 3.59 | undervalue

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 98.29115.9465.6224.3115.9211.037.645.293.672.54
Revenue (%)
EBITDA 8.925.19-3.28-24.88-1.03-2.21-1.53-1.06-0.73-0.51
EBITDA (%)
EBIT 8.294.49-3.93-25.45-1.40-2.36-1.64-1.13-0.79-0.54
EBIT (%)
Depreciation 0.630.700.640.570.370.150.110.070.050.04
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 82.8957.0537.0636.3253.8014.9410.357.174.973.44
Total Cash (%)
Account Receivables 17.8961.4679.1950.7328.3512.768.846.134.242.94
Account Receivables (%)
Inventories 17.1426.396.146.701.541.911.330.920.640.44
Inventories (%)
Accounts Payable 27.4550.7630.8725.1219.037.545.223.622.511.74
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 98.29115.9465.6224.3115.9211.037.645.293.672.54
EBITDA 8.925.19-3.28-24.88-1.03-2.21-1.53-1.06-0.73-0.51
EBIT 8.294.49-3.93-25.45-1.40-2.36-1.64-1.13-0.79-0.54
Tax Rate 15.32%-8.51%0.79%7.00%-129.99%-23.08%-23.08%-23.08%-23.08%-23.08%
EBIAT 7.024.87-3.90-23.67-3.22-2.91-2.01-1.40-0.97-0.67
Depreciation 0.630.700.640.570.370.150.110.070.050.04
Accounts Receivable --43.57-17.7328.4622.3915.593.922.721.881.30
Inventories --9.2520.25-0.555.16-0.380.590.410.280.20
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 6.92-24.16-21.13-1.0618.260.860.220.150.100.07
WACC
PV UFCF 0.790.180.120.070.05
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