Discounted Cash Flow (DCF) Analysis Unlevered
ReTo Eco-Solutions Inc (RETO)
$1.77
0.03 (+1.72%)
Operating Data
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected |
| Revenue | 32.42 | 35.55 | 37.57 | 40.45 | 43.55 | 46.88 | 50.47 | 54.34 | 58.50 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| EBITDA | 9.55 | 11.99 | 10.90 | 12.43 | 13.38 | 14.41 | 15.51 | 16.70 | 17.98 |
| EBITDA (%) | |||||||||
| EBIT | 8.19 | 10.42 | 9.17 | 10.06 | 11.30 | 12.17 | 13.10 | 14.10 | 15.19 |
| EBIT (%) | |||||||||
| Depreciation | 1.36 | 1.57 | 1.73 | 2.37 | 2.08 | 2.24 | 2.41 | 2.59 | 2.79 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected |
| Total Cash | 1.59 | 10.86 | 1.48 | 5.31 | 5.72 | 6.16 | 6.63 | 7.14 | 7.69 |
|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||
| Account Receivables | 15.21 | 18.50 | 16.07 | 19.11 | 20.57 | 22.15 | 23.84 | 25.67 | 27.64 |
| Account Receivables (%) | |||||||||
| Inventories | 1.31 | 1.61 | 4.63 | 2.82 | 3.03 | 3.27 | 3.52 | 3.78 | 4.07 |
| Inventories (%) | |||||||||
| Accounts Payable | 4.41 | 2.51 | 2.37 | 3.63 | 3.91 | 4.21 | 4.53 | 4.88 | 5.26 |
| Accounts Payable (%) | |||||||||
| Capital Expenditure | -11.05 | -4.64 | -9.28 | -1.45 | -8.21 | -8.84 | -9.52 | -10.25 | -11.03 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.77 |
|---|---|
| Beta | 2.431 |
| Diluted Shares Outstanding | 22.76 |
| Cost of Debt | |
| Tax Rate | 27.12 |
| After-tax Cost of Debt | 3.64% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 21.812 |
| Total Debt | 17.44 |
| Total Equity | 40.29 |
| Total Capital | 57.72 |
| Debt Weighting | 30.21 |
| Equity Weighting | 69.79 |
| Wacc |
Build Up Free Cash
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected |
| Revenue | 32.42 | 35.55 | 37.57 | 40.45 | 43.55 | 46.88 | 50.47 | 54.34 | 58.50 |
|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 9.55 | 11.99 | 10.90 | 12.43 | 13.38 | 14.41 | 15.51 | 16.70 | 17.98 |
| EBIT | 8.19 | 10.42 | 9.17 | 10.06 | 11.30 | 12.17 | 13.10 | 14.10 | 15.19 |
| Tax Rate | 36.43% | 36.45% | 27.12% | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% |
| EBIAT | 5.21 | 6.62 | 6.68 | 6.70 | 7.54 | 8.11 | 8.73 | 9.40 | 10.12 |
| Depreciation | 1.36 | 1.57 | 1.73 | 2.37 | 2.08 | 2.24 | 2.41 | 2.59 | 2.79 |
| Accounts Receivable | - | -3.30 | 2.43 | -3.04 | -1.46 | -1.58 | -1.70 | -1.83 | -1.97 |
| Inventories | - | -0.30 | -3.02 | 1.81 | -0.22 | -0.23 | -0.25 | -0.27 | -0.29 |
| Accounts Payable | - | -1.90 | -0.13 | 1.26 | 0.28 | 0.30 | 0.32 | 0.35 | 0.37 |
| Capital Expenditure | -11.05 | -4.64 | -9.28 | -1.45 | -8.21 | -8.84 | -9.52 | -10.25 | -11.03 |
| UFCF | -4.49 | -1.95 | -1.58 | 7.66 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| WACC | |||||||||
| PV UFCF | 12.05 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| SUM PV UFCF | 0.00 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 16.32 |
| Free cash flow (t + 1) | 0.00 |
| Terminal Value | 0.01 |
| Present Value of Terminal Value | 0.00 |
Intrinsic Value
| Enterprise Value | 0.01 |
|---|---|
| Net Debt | 15.96 |
| Equity Value | -15.95 |
| Shares Outstanding | 22.76 |
| Equity Value Per Share | -0.70 |