Discounted Cash Flow (DCF) Analysis Unlevered

ION Geophysical Corp (IO)

$ 2.56
-0.11 (-4.12%)

Operating Data

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 549.17509.56221.51172.81197.55180.05174.68122.67102.8786.2672.3360.6550.86
Revenue (%)
EBITDA -62.0666.9463.6617.2950.8440.0318.7415.8614.4312.1010.148.517.13
EBITDA (%)
EBIT -166.93-25.091.35-38.02-12.85-17.72-24.46-10.44-12.29-10.31-8.64-7.25-6.08
EBIT (%)
Depreciation 104.8792.0362.3155.3163.6957.7543.2026.3026.7222.4018.7915.7513.21
Depreciation (%)

Balance Sheet Data

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
Total Cash 148.06173.6184.9352.6552.0633.5533.0737.4928.8424.1920.2817.0114.26
Total Cash (%)
Account Receivables 198.92136.9264.3034.1856.7870.1641.3619.3128.1623.6219.8016.6113.92
Account Receivables (%)
Inventories 57.1751.1632.7215.2414.5114.1312.1911.279.698.136.825.724.79
Inventories (%)
Accounts Payable 22.6536.8629.8026.8924.9534.9149.3233.4216.4413.7911.569.698.13
Accounts Payable (%)
Capital Expenditure -131.50-76.05-64.80-16.37-24.77-29.79-31.21-28.37-18.99-15.92-13.35-11.20-9.39
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.56
Beta 4.216
Diluted Shares Outstanding 14.27
Cost of Debt
Tax Rate -73.17
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 36.016
Total Debt 189.67
Total Equity 36.54
Total Capital 226.21
Debt Weighting 83.85
Equity Weighting 16.15
Wacc

Build Up Free Cash

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 549.17509.56221.51172.81197.55180.05174.68122.67102.8786.2672.3360.6550.86
EBITDA -62.0666.9463.6617.2950.8440.0318.7415.8614.4312.1010.148.517.13
EBIT -166.93-25.091.35-38.02-12.85-17.72-24.46-10.44-12.29-10.31-8.64-7.25-6.08
Tax Rate -11.35%-19.93%-19.01%-8.03%-3.03%-5.16%-23.11%-73.17%-20.35%-20.35%-20.35%-20.35%-20.35%
EBIAT -185.88-30.091.60-41.07-13.24-18.63-30.11-18.08-14.79-12.40-10.40-8.72-7.31
Depreciation 104.8792.0362.3155.3163.6957.7543.2026.3026.7222.4018.7915.7513.21
Accounts Receivable -61.9972.6230.12-22.60-13.3828.8022.06-8.864.553.813.202.68
Inventories -6.0118.4417.480.730.381.940.921.571.571.311.100.92
Accounts Payable -14.21-7.06-2.91-1.949.9614.40-15.90-16.98-2.65-2.23-1.87-1.57
Capital Expenditure -131.50-76.05-64.80-16.37-24.77-29.79-31.21-28.37-18.99-15.92-13.35-11.20-9.39
UFCF -212.5068.1083.1142.551.876.2927.01-13.07-31.32-2.46-2.07-1.73-1.45
WACC
PV UFCF -25.88-1.85-1.41-1.08-0.82
SUM PV UFCF -34.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.01
Free cash flow (t + 1) -1.51
Terminal Value -25.14
Present Value of Terminal Value -15.60

Intrinsic Value

Enterprise Value -49.75
Net Debt 152.19
Equity Value -201.93
Shares Outstanding 14.27
Equity Value Per Share -14.15