Discounted Cash Flow (DCF) Analysis Unlevered

WideOpenWest, Inc. (WOW)

$12

-0.22 (-1.80%)
All numbers are in Millions, Currency in USD
Stock DCF: -9.10 | 12 | overvalue

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 1,188.101,153.801,145.801,148.40725.70652.84587.29528.33475.28427.56
Revenue (%)
EBITDA 376.70167386.20383.501,060.50338.71304.70274.11246.59221.83
EBITDA (%)
EBIT 178.60-19.90180152.90850.20208.24187.33168.52151.60136.38
EBIT (%)
Depreciation 198.10186.90206.20230.60210.30130.47117.37105.5994.9985.45
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 69.4013.202112.40193.2047.6842.9038.5934.7131.23
Total Cash (%)
Account Receivables 83.6083.8075.6073.2058.1046.0641.4437.2833.5330.17
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 26.104247.1043.8050.3027.0224.3121.8719.6717.69
Accounts Payable (%)
Capital Expenditure -301.30-314.10-247.50-234.10-207.70-160.84-144.70-130.17-117.10-105.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 12
Beta 1.768
Diluted Shares Outstanding 82.72
Cost of Debt
Tax Rate 1,035.07
After-tax Cost of Debt -115.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.879
Total Debt 760.30
Total Equity 992.65
Total Capital 1,752.95
Debt Weighting 43.37
Equity Weighting 56.63
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 1,188.101,153.801,145.801,148.40725.70652.84587.29528.33475.28427.56
EBITDA 376.70167386.20383.501,060.50338.71304.70274.11246.59221.83
EBIT 178.60-19.90180152.90850.20208.24187.33168.52151.60136.38
Tax Rate -490.74%40.55%3.96%35.14%1,035.07%124.80%124.80%124.80%124.80%124.80%
EBIAT 1,055.06-11.83172.8899.18-7,949.99-51.63-46.45-41.79-37.59-33.82
Depreciation 198.10186.90206.20230.60210.30130.47117.37105.5994.9985.45
Accounts Receivable --0.208.202.4015.1012.044.624.163.743.37
Inventories ----------
Accounts Payable -15.905.10-3.306.50-23.28-2.71-2.44-2.20-1.97
Capital Expenditure -301.30-314.10-247.50-234.10-207.70-160.84-144.70-130.17-117.10-105.34
UFCF 951.86-123.33144.8894.78-7,925.79-93.25-71.86-64.64-58.15-52.32
WACC
PV UFCF -164.05-222.42-352.02-557.14-881.78
SUM PV UFCF -2,177.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -43.16
Free cash flow (t + 1) -53.36
Terminal Value 118.16
Present Value of Terminal Value 1,991.62

Intrinsic Value

Enterprise Value -185.80
Net Debt 567.10
Equity Value -752.90
Shares Outstanding 82.72
Equity Value Per Share -9.10