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Discounted Cash Flow (DCF) Analysis Unlevered


Acacia Research Corporation

Acacia Research Corporation (ACTG)

Industrials

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 130.56130.88125.05152.7065.40131.51147.76166.02186.55209.60235.51
Revenue (%)
EBITDA -29.11-8.06-101.95-1.5325.1522.37-13.68-15.37-17.27-19.41-21.81
EBITDA (%)
EBIT -78.39-62.12-155.24-35.892.90-4.77-62.64-70.38-79.08-88.85-99.83
EBIT (%)
Depreciation 49.2754.0553.2934.3622.2427.1448.9555.0061.8069.4478.02
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 256.70193.03145.95158.49136.60165.46221.46248.84279.59314.15352.98
Total Cash (%)
Account Receivables 6.3520.1733.5026.750.1532.8922.1224.8527.9331.3835.26
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 11.5514.8617.3414.287.958.3515.2517.1319.2521.6324.30
Accounts Payable (%)
Capital Expenditure -25.73-42.85-19.51-1.22--0.04-16.96-19.06-21.42-24.06-27.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.9
Diluted Shares Outstanding 49.97
Cost of Debt
Tax Rate -24.65
After-tax Cost of Debt 1.28
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.16
Total Debt -
Total Equity 144.91
Total Capital 144.91
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 130.56130.88125.05152.7065.40131.51147.76166.02186.55209.60235.51
EBITDA -29.11-8.06-101.95-1.5325.1522.37-13.68-15.37-17.27-19.41-21.81
EBIT -78.39-62.12-155.24-35.892.90-4.77-62.64-70.38-79.08-88.85-99.83
Tax Rate 28.01%-6.30%-3.09%-50.69%101.83%-24.65%7.52%7.52%7.52%7.52%7.52%
EBIAT -56.43-66.03-160.04-54.08-0.05-5.95-57.93-65.09-73.13-82.17-92.33
Depreciation 49.2754.0553.2934.3622.2427.1448.9555.0061.8069.4478.02
Accounts Receivable --13.82-13.336.7526.60-32.7410.77-2.73-3.07-3.45-3.88
Inventories -----------
Accounts Payable -3.302.49-3.07-6.320.406.901.882.122.382.67
Capital Expenditure -17.12-23.34-18.29-1.22-16.922.102.362.652.97
UFCF -7.16-5.38-140.94-34.3241.25-11.1525.62-8.84-9.93-11.16-12.53
WACC
PV UFCF 23.47-7.42-7.63-7.86-8.09
SUM PV UFCF -128.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.16
Free cash flow (t + 1) -13.04
Terminal Value -252.64
Present Value of Terminal Value -163.00

Intrinsic Value

Enterprise Value -291.02
Net Debt -165.46
Equity Value -125.56
Shares Outstanding 49.97
Equity Value Per Share -2.51

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
11.16 (%) -0.78 Sell -0.95 Sell -1.15 Sell -1.40 Sell -1.73 Sell -2.16 Sell -2.76 Sell -3.65 Sell -5.09 Sell
10.66 (%) -0.68 Sell -0.83 Sell -1.01 Sell -1.23 Sell -1.51 Sell -1.88 Sell -2.38 Sell -3.08 Sell -4.18 Sell
10.16 (%) -0.59 Sell -0.72 Sell -0.89 Sell -1.08 Sell -1.33 Sell -1.64 Sell -2.06 Sell -2.63 Sell -3.49 Sell
9.66 (%) -0.51 Sell -0.63 Sell -0.77 Sell -0.95 Sell -1.16 Sell -1.43 Sell -1.79 Sell -2.26 Sell -2.95 Sell
9.16 (%) -0.43 Sell -0.54 Sell -0.67 Sell -0.83 Sell -1.02 Sell -1.25 Sell -1.56 Sell -1.96 Sell -2.51 Sell
8.66 (%) -0.36 Sell -0.46 Sell -0.58 Sell -0.72 Sell -0.89 Sell -1.10 Sell -1.36 Sell -1.70 Sell -2.16 Sell
8.16 (%) -0.30 Sell -0.39 Sell -0.50 Sell -0.62 Sell -0.77 Sell -0.96 Sell -1.18 Sell -1.48 Sell -1.86 Sell
7.66 (%) -0.24 Sell -0.32 Sell -0.42 Sell -0.53 Sell -0.67 Sell -0.83 Sell -1.03 Sell -1.28 Sell -1.61 Sell
7.16 (%) -0.19 Sell -0.26 Sell -0.35 Sell -0.45 Sell -0.58 Sell -0.72 Sell -0.90 Sell -1.12 Sell -1.40 Sell