Discounted Cash Flow (DCF) Analysis Levered

Communications Systems, Inc. (JCS)

$ 10.3
0.56 5.75%

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 99.3582.3265.7650.9142.5834.4627.9022.5818.2814.80
Revenue (%)
Operating Cash Flow 1.223.65-4.7210.23-3.140.770.630.510.410.33
Operating Cash Flow (%)
Capital Expenditure -2.29-0.77-0.76-0.42-0.56-0.45-0.37-0.30-0.24-0.19
Capital Expenditure (%)
Free Cash Flow -1.072.88-5.499.81-3.690.320.260.210.170.14

Weighted Average Cost Of Capital

Share price $ 10.3
Beta 1.073
Diluted Shares Outstanding 9.44
Cost of Debt
Tax Rate -1.15
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.002
Total Debt -
Total Equity 97.28
Total Capital 97.28
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 99.3582.3265.7650.9142.5834.4627.9022.5818.2814.80
Operating Cash Flow 1.223.65-4.7210.23-3.140.770.630.510.410.33
Capital Expenditure -2.29-0.77-0.76-0.42-0.56-0.45-0.37-0.30-0.24-0.19
Free Cash Flow -1.072.88-5.499.81-3.690.320.260.210.170.14
WACC
PV LFCF 0.170.130.090.070.05
SUM PV LFCF 0.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.00
Free cash flow (t + 1) 0.14
Terminal Value 2.05
Present Value of Terminal Value 1.22

Intrinsic Value

Enterprise Value 2.06
Net Debt -13.09
Equity Value 15.16
Shares Outstanding 9.44
Equity Value Per Share 1.60