Discounted Cash Flow (DCF) Analysis Unlevered

Net Element, Inc. (NETE)

$ 8.87
0.44 5.22%

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 54.2960.0665.796565.716972.4676.0979.9183.92
Revenue (%)
EBITDA -3.68-6.060.27-1.11-1.46-2.82-2.96-3.11-3.26-3.42
EBITDA (%)
EBIT -7.15-8.60-2.19-4.23-4.49-6.09-6.40-6.72-7.06-7.41
EBIT (%)
Depreciation 3.472.532.453.123.043.283.443.623.803.99
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 0.6211.291.650.494.544.154.364.584.815.05
Total Cash (%)
Account Receivables 7.135.476.296.567.117.277.648.028.428.85
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 7.516.796.376.047.177.597.978.378.799.23
Accounts Payable (%)
Capital Expenditure -0.19-1.99-5.53-2.45-2.60-2.73-2.87-3.01-3.16-3.32
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.87
Beta 1.948
Diluted Shares Outstanding 5.97
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.967
Total Debt 1.33
Total Equity 52.96
Total Capital 54.29
Debt Weighting 2.45
Equity Weighting 97.55
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 54.2960.0665.796565.716972.4676.0979.9183.92
EBITDA -3.68-6.060.27-1.11-1.46-2.82-2.96-3.11-3.26-3.42
EBIT -7.15-8.60-2.19-4.23-4.49-6.09-6.40-6.72-7.06-7.41
Tax Rate 0.94%1.09%1.72%1.62%0.00%1.08%1.08%1.08%1.08%1.08%
EBIAT -7.08-8.50-2.15-4.17-4.49-6.03-6.33-6.65-6.98-7.33
Depreciation 3.472.532.453.123.043.283.443.623.803.99
Accounts Receivable -1.65-0.82-0.27-0.55-0.17-0.36-0.38-0.40-0.42
Inventories ----------
Accounts Payable --0.72-0.42-0.331.130.420.380.400.420.44
Capital Expenditure -0.19-1.99-5.53-2.45-2.60-2.73-2.87-3.01-3.16-3.32
UFCF -3.80-7.03-6.46-4.10-3.48-5.22-5.74-6.03-6.33-6.65
WACC
PV UFCF -6.15-5.74-5.12-4.57-4.08
SUM PV UFCF -18.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 17.65
Free cash flow (t + 1) -6.91
Terminal Value -50.64
Present Value of Terminal Value -22.47

Intrinsic Value

Enterprise Value -41.01
Net Debt -3.21
Equity Value -37.80
Shares Outstanding 5.97
Equity Value Per Share -6.33