Discounted Cash Flow (DCF) Analysis Unlevered
Wearable Devices Ltd. (WLDS)
$1.17
-0.24 (-17.02%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 0.24 | 0.06 | 0.14 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| EBITDA | -0.94 | -1.15 | -2.55 | -6.51 | -2.13 | -2.16 | -2.19 | -2.23 | -2.26 |
| EBITDA (%) | |||||||||
| EBIT | -0.95 | -1.16 | -2.56 | -6.53 | -2.14 | -2.17 | -2.20 | -2.23 | -2.27 |
| EBIT (%) | |||||||||
| Depreciation | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 1.58 | 0.48 | 1.27 | 10.37 | 2.90 | 2.95 | 2.99 | 3.03 | 3.08 |
|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||
| Account Receivables | 0.01 | 0.07 | 0.12 | 0.60 | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 |
| Account Receivables (%) | |||||||||
| Inventories | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Inventories (%) | |||||||||
| Accounts Payable | 0.07 | 0.03 | 0.07 | 0.16 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Accounts Payable (%) | |||||||||
| Capital Expenditure | -0 | -0.02 | -0.04 | -0.05 | -0.02 | -0.02 | -0.02 | -0.02 | -0.02 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.17 |
|---|---|
| Beta | 0.000 |
| Diluted Shares Outstanding | 15.01 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | -23.46% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 3.810 |
| Total Debt | 0.16 |
| Total Equity | 17.56 |
| Total Capital | 17.72 |
| Debt Weighting | 0.91 |
| Equity Weighting | 99.09 |
| Wacc |
Build Up Free Cash
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 0.24 | 0.06 | 0.14 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -0.94 | -1.15 | -2.55 | -6.51 | -2.13 | -2.16 | -2.19 | -2.23 | -2.26 |
| EBIT | -0.95 | -1.16 | -2.56 | -6.53 | -2.14 | -2.17 | -2.20 | -2.23 | -2.27 |
| Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| EBIAT | -0.95 | -1.16 | -2.56 | -6.53 | -2.14 | -2.17 | -2.20 | -2.23 | -2.27 |
| Depreciation | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Accounts Receivable | - | -0.06 | -0.05 | -0.48 | 0.42 | -0 | -0 | -0 | -0 |
| Inventories | - | -0.01 | 0.01 | 0.01 | -0 | -0 | -0 | -0 | -0 |
| Accounts Payable | - | -0.04 | 0.04 | 0.08 | -0.10 | 0 | 0 | 0 | 0 |
| Capital Expenditure | -0 | -0.02 | -0.04 | -0.05 | -0.02 | -0.02 | -0.02 | -0.02 | -0.02 |
| UFCF | -0.94 | -1.28 | -2.58 | -6.95 | -1.83 | -2.18 | -2.21 | -2.25 | -2.28 |
| WACC | |||||||||
| PV UFCF | -1.83 | -2.11 | -2.06 | -2.02 | -1.98 | ||||
| SUM PV UFCF | -9.66 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.56 |
| Free cash flow (t + 1) | -2.32 |
| Terminal Value | -149 |
| Present Value of Terminal Value | -125.09 |
Intrinsic Value
| Enterprise Value | -134.75 |
|---|---|
| Net Debt | -10.21 |
| Equity Value | -124.54 |
| Shares Outstanding | 15.01 |
| Equity Value Per Share | -8.30 |