Discounted Cash Flow (DCF) Analysis Levered

Sequential Brands Group Inc (SQBG)

$ 13.2
3.53 (+36.50%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 22.6541.8488.26155.53167.46169.96101.5889.81119.22158.26210.08278.87370.18
Revenue (%)
Operating Cash Flow -3.56-3.16-8.9543.0428.2132.903.414.345.767.6510.1613.4817.90
Operating Cash Flow (%)
Capital Expenditure -1.23-1.68-1.90-3.82-3.40-4.53-0.20-0.07-2.83-3.76-4.99-6.63-8.80
Capital Expenditure (%)
Free Cash Flow -4.78-4.84-10.8539.2124.8128.373.214.272.933.895.166.859.10

Weighted Average Cost Of Capital

Share price $ 13.2
Beta 1.550
Diluted Shares Outstanding 1.65
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.796
Total Debt 18.69
Total Equity 21.79
Total Capital 40.47
Debt Weighting 46.17
Equity Weighting 53.83
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 22.6541.8488.26155.53167.46169.96101.5889.81119.22158.26210.08278.87370.18
Operating Cash Flow -3.56-3.16-8.9543.0428.2132.903.414.345.767.6510.1613.4817.90
Capital Expenditure -1.23-1.68-1.90-3.82-3.40-4.53-0.20-0.07-2.83-3.76-4.99-6.63-8.80
Free Cash Flow -4.78-4.84-10.8539.2124.8128.373.214.272.933.895.166.859.10
WACC
PV LFCF 2.663.203.854.645.58
SUM PV LFCF 19.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.27
Free cash flow (t + 1) 9.46
Terminal Value 150.91
Present Value of Terminal Value 92.56

Intrinsic Value

Enterprise Value 112.48
Net Debt 3.19
Equity Value 109.30
Shares Outstanding 1.65
Equity Value Per Share 66.22