DCF Tool

CABO

Cable One Inc – Cable and Other Subscription Programming
Cable One, Inc. is a leading broadband communications provider serving more than 950,000 residential and business customers in 21 states through its Sparklight® and Clearwave® brands. Sparklight provides consumers with a wide array of connectivity and entertainment services, including high-speed internet and advanced Wi-Fi solutions, cable television and phone service. Sparklight Business and Clearwave provide scalable and cost-effective products for businesses ranging in size from small to mid-market, in addition to enterprise, wholesale and carrier customers.
Analysis Results
Intrinsic Value $3,077.19
Latest Price $1,349.72
Relative Value 56% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 395 374
2023 470 421
2024 559 474
2025 665 533
2026 792 600
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 21900 million. This corresponds to a present value of 15700 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2400 million. Adding in the terminal value gives a total present value of 18100 million.

There are presently 5.88 million outstanding shares, so the intrinsic value per share is 3077.19.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 500,953,000
Current Cash 388,802,000
Current Liabilities 269,075,000
Current Debt 50,354,000
Non-Cash Working Capital (NCWC) -106,570,000
Change in NCWC -18,131,000
EBIT 464,869,000
Tax Provision 45,765,000
Depreciation and Amortization 339,025,000
Capital Expenditure -391,934,000
Unlevered Free Cash Flow 330,809,382
Current Assets 672,813,000
Current Cash 574,909,000
Current Liabilities 221,582,000
Current Debt 35,239,000
Non-Cash Working Capital (NCWC) -88,439,000
Change in NCWC 10,176,000
EBIT 387,080,000
Tax Provision 76,317,000
Depreciation and Amortization 265,658,000
Capital Expenditure -293,229,000
Unlevered Free Cash Flow 292,090,664
Current Assets 181,488,000
Current Cash 125,271,000
Current Liabilities 189,542,000
Current Debt 34,710,000
Non-Cash Working Capital (NCWC) -98,615,000
Change in NCWC -43,966,000
EBIT 317,638,000
Tax Provision 55,233,000
Depreciation and Amortization 216,687,000
Capital Expenditure -262,352,000
Unlevered Free Cash Flow 152,972,893
Current Assets 317,863,000
Current Cash 264,113,000
Current Liabilities 133,713,000
Current Debt 25,314,000
Non-Cash Working Capital (NCWC) -54,649,000
Change in NCWC 11,954,000
EBIT 282,079,000
Tax Provision 47,224,000
Depreciation and Amortization 197,731,000
Capital Expenditure -217,766,000
Unlevered Free Cash Flow 211,158,829
Current Assets 242,384,000
Current Cash 161,752,000
Current Liabilities 170,604,000
Current Debt 23,369,000
Non-Cash Working Capital (NCWC) -66,603,000
Change in NCWC -17,587,000
EBIT 236,571,000
Tax Provision -44,227,000
Depreciation and Amortization 181,619,000
Capital Expenditure -179,363,000
Unlevered Free Cash Flow 221,240,000
Current Assets 185,937,000
Current Cash 138,040,000
Current Liabilities 111,143,000
Current Debt 14,230,000
Non-Cash Working Capital (NCWC) -49,016,000
Change in NCWC 18,209,000
EBIT 188,207,000
Tax Provision 64,168,000
Depreciation and Amortization 142,183,000
Capital Expenditure -125,534,000
Unlevered Free Cash Flow 149,022,397
Current Assets 166,353,000
Current Cash 119,199,000
Current Liabilities 126,832,000
Current Debt 12,453,000
Non-Cash Working Capital (NCWC) -67,225,000
Change in NCWC -22,697,000
EBIT 161,742,000
Tax Provision 56,387,000
Depreciation and Amortization 140,635,000
Capital Expenditure -156,136,000
Unlevered Free Cash Flow 60,828,100

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