Discounted Cash Flow (DCF) Analysis Unlevered

Communications Systems, Inc. (JCS)

$ 10.17
0.43 4.41%

Operating Data

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 (%)
EBITDA -4.05-8.60-4.137.53-1.75-0.70-0.57-0.46-0.37-0.30
EBITDA (%)
EBIT -7.74-11.79-6.356.49-2.71-1.75-1.42-1.15-0.93-0.75
EBIT (%)
Depreciation 3.683.192.211.030.961.050.850.690.560.45
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 16.2517.9911.0623.3815.859.527.716.245.054.09
Total Cash (%)
Account Receivables 14.5512.1813.4010.2410.186.475.244.243.432.78
Account Receivables (%)
Inventories 22.2013.9816.188.538.706.975.644.573.702.99
Inventories (%)
Accounts Payable 6.954.555.393.722.382.321.881.521.231
Accounts Payable (%)
Capital Expenditure -2.29-0.77-0.76-0.42-0.56-0.45-0.37-0.30-0.24-0.19
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 10.17
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 96.06
Total Capital 96.06
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash

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
EBITDA -4.05-8.60-4.137.53-1.75-0.70-0.57-0.46-0.37-0.30
EBIT -7.74-11.79-6.356.49-2.71-1.75-1.42-1.15-0.93-0.75
Tax Rate -3.27%0.29%-6.35%-2,648.69%-1.15%-531.83%-531.83%-531.83%-531.83%-531.83%
EBIAT -7.99-11.75-6.75178.45-2.74-11.05-8.94-7.24-5.86-4.74
Depreciation 3.683.192.211.030.961.050.850.690.560.45
Accounts Receivable -2.37-1.223.160.063.711.2310.810.65
Inventories -8.22-2.197.64-0.171.731.331.070.870.70
Accounts Payable --2.400.84-1.67-1.34-0.06-0.44-0.36-0.29-0.23
Capital Expenditure -2.29-0.77-0.76-0.42-0.56-0.45-0.37-0.30-0.24-0.19
UFCF -6.59-1.15-7.87188.19-3.78-5.07-6.34-5.13-4.15-3.36
WACC
PV UFCF -5.63-6.34-4.62-3.37-2.46
SUM PV UFCF -18.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.00
Free cash flow (t + 1) -3.50
Terminal Value -49.95
Present Value of Terminal Value -29.65

Intrinsic Value

Enterprise Value -47.85
Net Debt -13.09
Equity Value -34.75
Shares Outstanding 9.44
Equity Value Per Share -3.68