Discounted Cash Flow (DCF) Analysis Unlevered
WideOpenWest, Inc. (WOW)
$12
-0.22 (-1.80%)
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 | 1,188.10 | 1,153.80 | 1,145.80 | 1,148.40 | 725.70 | 652.84 | 587.29 | 528.33 | 475.28 | 427.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 376.70 | 167 | 386.20 | 383.50 | 1,060.50 | 338.71 | 304.70 | 274.11 | 246.59 | 221.83 |
| EBITDA (%) | ||||||||||
| EBIT | 178.60 | -19.90 | 180 | 152.90 | 850.20 | 208.24 | 187.33 | 168.52 | 151.60 | 136.38 |
| EBIT (%) | ||||||||||
| Depreciation | 198.10 | 186.90 | 206.20 | 230.60 | 210.30 | 130.47 | 117.37 | 105.59 | 94.99 | 85.45 |
| 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 | 69.40 | 13.20 | 21 | 12.40 | 193.20 | 47.68 | 42.90 | 38.59 | 34.71 | 31.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 83.60 | 83.80 | 75.60 | 73.20 | 58.10 | 46.06 | 41.44 | 37.28 | 33.53 | 30.17 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 26.10 | 42 | 47.10 | 43.80 | 50.30 | 27.02 | 24.31 | 21.87 | 19.67 | 17.69 |
| 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 | 1,188.10 | 1,153.80 | 1,145.80 | 1,148.40 | 725.70 | 652.84 | 587.29 | 528.33 | 475.28 | 427.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 376.70 | 167 | 386.20 | 383.50 | 1,060.50 | 338.71 | 304.70 | 274.11 | 246.59 | 221.83 |
| EBIT | 178.60 | -19.90 | 180 | 152.90 | 850.20 | 208.24 | 187.33 | 168.52 | 151.60 | 136.38 |
| 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 | -11.83 | 172.88 | 99.18 | -7,949.99 | -51.63 | -46.45 | -41.79 | -37.59 | -33.82 |
| Depreciation | 198.10 | 186.90 | 206.20 | 230.60 | 210.30 | 130.47 | 117.37 | 105.59 | 94.99 | 85.45 |
| Accounts Receivable | - | -0.20 | 8.20 | 2.40 | 15.10 | 12.04 | 4.62 | 4.16 | 3.74 | 3.37 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 15.90 | 5.10 | -3.30 | 6.50 | -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 | -123.33 | 144.88 | 94.78 | -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 |