Discounted Cash Flow (DCF) Analysis Unlevered
EchoStar Corporation (SATS)
Technology
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 | 3,282.45 | 3,445.59 | 1,848.90 | 1,810.45 | 1,885.40 | 2,091.28 | 1,972.50 | 1,860.46 | 1,754.79 | 1,655.12 | 1,561.10 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| EBITDA | 664.70 | 911.70 | 854.75 | 878.79 | 859.36 | 836.93 | 746.59 | 704.18 | 664.19 | 626.46 | 590.88 |
| EBITDA (%) | |||||||||||
| EBIT | 157.56 | 354.90 | 326.52 | 383.63 | 325.61 | 238.82 | 271.81 | 256.37 | 241.81 | 228.07 | 215.12 |
| EBIT (%) | |||||||||||
| Depreciation | 507.14 | 556.81 | 528.23 | 495.16 | 533.76 | 598.11 | 474.78 | 447.81 | 422.38 | 398.39 | 375.76 |
| 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 | 1,620.55 | 1,687.99 | 1,536.62 | 3,092.97 | 3,245.53 | 3,210.54 | 2,228.92 | 2,102.32 | 1,982.91 | 1,870.28 | 1,764.05 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||||
| Account Receivables | 604.30 | 505.12 | 547.28 | 292.57 | 332.77 | 310.35 | 365.90 | 345.12 | 325.51 | 307.02 | 289.58 |
| Account Receivables (%) | |||||||||||
| Inventories | 65.98 | 63.05 | 66.93 | 62.64 | 83.52 | 75.29 | 62.33 | 58.79 | 55.45 | 52.30 | 49.33 |
| Inventories (%) | |||||||||||
| Accounts Payable | 257.02 | 220.86 | 238.32 | 171.45 | 113.12 | 123.18 | 159.38 | 150.33 | 141.79 | 133.73 | 126.14 |
| Accounts Payable (%) | |||||||||||
| Capital Expenditure | -391.92 | -680.16 | -809.27 | -698.29 | -578.82 | -477.65 | -550.92 | -519.63 | -490.11 | -462.27 | -436.02 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 39.63 |
|---|---|
| Diluted Shares Outstanding | 96.74 |
| Cost of Debt | |
| Tax Rate | -312.93 |
| After-tax Cost of Debt | 15.70 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.94 |
| Total Debt | 2,573.20 |
| Total Equity | 3,833.85 |
| Total Capital | 6,407.05 |
| Debt Weighting | 40.16 |
| Equity Weighting | 59.84 |
| 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 | 3,282.45 | 3,445.59 | 1,848.90 | 1,810.45 | 1,885.40 | 2,091.28 | 1,972.50 | 1,860.46 | 1,754.79 | 1,655.12 | 1,561.10 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 664.70 | 911.70 | 854.75 | 878.79 | 859.36 | 836.93 | 746.59 | 704.18 | 664.19 | 626.46 | 590.88 |
| EBIT | 157.56 | 354.90 | 326.52 | 383.63 | 325.61 | 238.82 | 271.81 | 256.37 | 241.81 | 228.07 | 215.12 |
| Tax Rate | 107.23% | 16.76% | 25.04% | 30.85% | -262.56% | -312.93% | -65.93% | -65.93% | -65.93% | -65.93% | -65.93% |
| EBIAT | -11.40 | 295.41 | 244.75 | 265.30 | 1,180.52 | 986.17 | 451.03 | 425.41 | 401.24 | 378.45 | 356.96 |
| Depreciation | 507.14 | 556.81 | 528.23 | 495.16 | 533.76 | 598.11 | 474.78 | 447.81 | 422.38 | 398.39 | 375.76 |
| Accounts Receivable | - | 99.18 | -42.15 | 254.71 | -40.20 | 22.43 | -55.55 | 20.78 | 19.60 | 18.49 | 17.44 |
| Inventories | - | 2.92 | -3.88 | 4.29 | -20.88 | 8.24 | 12.96 | 3.54 | 3.34 | 3.15 | 2.97 |
| Accounts Payable | - | -36.15 | 17.46 | -66.87 | -58.33 | 10.05 | 36.20 | -9.05 | -8.54 | -8.05 | -7.60 |
| Capital Expenditure | - | 288.23 | 129.11 | -110.98 | -119.47 | -101.17 | 73.27 | -31.29 | -29.51 | -27.84 | -26.26 |
| UFCF | 495.74 | 1,206.40 | 873.52 | 841.60 | 1,475.40 | 1,523.82 | 992.68 | 857.20 | 808.51 | 762.59 | 719.27 |
| WACC | |||||||||||
| PV UFCF | 868.94 | 656.82 | 542.29 | 447.73 | 369.66 | ||||||
| SUM PV UFCF | 5,180.22 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 14.24 |
| Free cash flow (t + 1) | 748.04 |
| Terminal Value | 7,305.10 |
| Present Value of Terminal Value | 3,754.36 |
Intrinsic Value
| Enterprise Value | 8,934.58 |
|---|---|
| Net Debt | -637.34 |
| Equity Value | 9,571.92 |
| Shares Outstanding | 96.74 |
| Equity Value Per Share | 98.94 |