Discounted Cash Flow (DCF) Analysis Unlevered

Value Line, Inc. (VALU)

$46.98

-2.16 (-4.40%)
All numbers are in Millions, Currency in USD
Stock DCF: 92.67 | 46.98 | 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 35.8736.2640.3040.3940.5241.8243.1644.5445.9647.43
Revenue (%)
EBITDA 13.0215.5921.7531.5731.9924.2925.0725.8726.6927.55
EBITDA (%)
EBIT 11.9015.2321.4830.2830.6623.3424.0924.8625.6526.48
EBIT (%)
Depreciation 1.130.370.271.291.340.950.981.011.041.07
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 23.7928.3234.1645.3557.8240.5041.7943.1344.5145.93
Total Cash (%)
Account Receivables 1.051.505.053.981.682.812.902.993.093.19
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1.932.072.062.081.312.052.122.192.262.33
Accounts Payable (%)
Capital Expenditure -0.41-0.12-0-0.18-0.01-0.16-0.17-0.17-0.18-0.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 46.98
Beta 0.181
Diluted Shares Outstanding 9.60
Cost of Debt
Tax Rate 22.25
After-tax Cost of Debt 0.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.551
Total Debt 7.37
Total Equity 450.86
Total Capital 458.23
Debt Weighting 1.61
Equity Weighting 98.39
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 35.8736.2640.3040.3940.5241.8243.1644.5445.9647.43
EBITDA 13.0215.5921.7531.5731.9924.2925.0725.8726.6927.55
EBIT 11.9015.2321.4830.2830.6623.3424.0924.8625.6526.48
Tax Rate -23.87%26.77%27.09%23.11%22.25%15.07%15.07%15.07%15.07%15.07%
EBIAT 14.7411.1515.6623.2823.8419.8320.4621.1121.7922.49
Depreciation 1.130.370.271.291.340.950.981.011.041.07
Accounts Receivable --0.45-3.541.062.31-1.13-0.09-0.09-0.10-0.10
Inventories ----------
Accounts Payable -0.14-0.010.02-0.760.740.070.070.070.07
Capital Expenditure -0.41-0.12-0-0.18-0.01-0.16-0.17-0.17-0.18-0.18
UFCF 15.4611.0812.3725.4826.7120.2221.2421.9222.6223.35
WACC
PV UFCF 19.3519.4619.2218.9918.75
SUM PV UFCF 95.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.48
Free cash flow (t + 1) 23.81
Terminal Value 960.24
Present Value of Terminal Value 771.28

Intrinsic Value

Enterprise Value 867.05
Net Debt -22.34
Equity Value 889.39
Shares Outstanding 9.60
Equity Value Per Share 92.67