Discounted Cash Flow (DCF) Analysis Unlevered
Veru Inc. (VERU)
$13.38
-0.91 (-6.37%)
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 | 13.66 | 15.86 | 31.80 | 42.59 | 61.26 | 91.03 | 135.27 | 201.01 | 298.70 | 443.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -8.12 | -19.67 | -7.14 | -14.97 | 9.36 | -41.11 | -61.08 | -90.77 | -134.88 | -200.43 |
| EBITDA (%) | ||||||||||
| EBIT | -8.60 | -20.12 | -7.62 | -15.43 | 9.15 | -42.80 | -63.60 | -94.50 | -140.43 | -208.68 |
| EBIT (%) | ||||||||||
| Depreciation | 0.48 | 0.45 | 0.47 | 0.46 | 0.21 | 1.69 | 2.51 | 3.73 | 5.55 | 8.24 |
| 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 | 3.28 | 3.76 | 6.30 | 13.59 | 122.36 | 54.46 | 80.93 | 120.26 | 178.71 | 265.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 3.56 | 3.97 | 5.02 | 5.23 | 13.79 | 18.51 | 27.50 | 40.87 | 60.73 | 90.24 |
| Account Receivables (%) | ||||||||||
| Inventories | 2.77 | 2.30 | 3.65 | 6.70 | 5.57 | 12.94 | 19.23 | 28.58 | 42.47 | 63.11 |
| Inventories (%) | ||||||||||
| Accounts Payable | 2.69 | 3.23 | 3.12 | 2.81 | 3.41 | 11.29 | 16.77 | 24.92 | 37.04 | 55.04 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.13 | -0.05 | -0.11 | -0.11 | -0.38 | -0.46 | -0.68 | -1.01 | -1.49 | -2.22 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 13.38 |
|---|---|
| Beta | 0.475 |
| Diluted Shares Outstanding | 83.80 |
| Cost of Debt | |
| Tax Rate | -73.36 |
| After-tax Cost of Debt | 35.56% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.027 |
| Total Debt | 13.74 |
| Total Equity | 1,121.28 |
| Total Capital | 1,135.02 |
| Debt Weighting | 1.21 |
| Equity Weighting | 98.79 |
| 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 | 13.66 | 15.86 | 31.80 | 42.59 | 61.26 | 91.03 | 135.27 | 201.01 | 298.70 | 443.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -8.12 | -19.67 | -7.14 | -14.97 | 9.36 | -41.11 | -61.08 | -90.77 | -134.88 | -200.43 |
| EBIT | -8.60 | -20.12 | -7.62 | -15.43 | 9.15 | -42.80 | -63.60 | -94.50 | -140.43 | -208.68 |
| Tax Rate | 23.14% | -3.75% | 2.47% | 5.38% | -73.36% | -9.23% | -9.23% | -9.23% | -9.23% | -9.23% |
| EBIAT | -6.61 | -20.88 | -7.43 | -14.60 | 15.87 | -46.75 | -69.46 | -103.22 | -153.39 | -227.93 |
| Depreciation | 0.48 | 0.45 | 0.47 | 0.46 | 0.21 | 1.69 | 2.51 | 3.73 | 5.55 | 8.24 |
| Accounts Receivable | - | -0.42 | -1.05 | -0.21 | -8.57 | -4.71 | -8.99 | -13.37 | -19.86 | -29.51 |
| Inventories | - | 0.47 | -1.35 | -3.06 | 1.13 | -7.37 | -6.29 | -9.35 | -13.89 | -20.64 |
| Accounts Payable | - | 0.54 | -0.10 | -0.31 | 0.60 | 7.88 | 5.49 | 8.15 | 12.11 | 18 |
| Capital Expenditure | -0.13 | -0.05 | -0.11 | -0.11 | -0.38 | -0.46 | -0.68 | -1.01 | -1.49 | -2.22 |
| UFCF | -6.26 | -19.89 | -9.56 | -17.82 | 8.86 | -49.71 | -77.43 | -115.06 | -170.97 | -254.06 |
| WACC | ||||||||||
| PV UFCF | -47.17 | -69.70 | -98.26 | -138.54 | -195.32 | |||||
| SUM PV UFCF | -548.98 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.40 |
| Free cash flow (t + 1) | -259.14 |
| Terminal Value | -7,621.86 |
| Present Value of Terminal Value | -5,859.47 |
Intrinsic Value
| Enterprise Value | -6,408.44 |
|---|---|
| Net Debt | -108.62 |
| Equity Value | -6,299.83 |
| Shares Outstanding | 83.80 |
| Equity Value Per Share | -75.17 |