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Dover Motorsports Inc – Racetracks
Dover Motorsports, Inc. is a leading promoter of NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Del. and Nashville Superspeedway near Nashville, Tenn. The company also plays host to the Firefly Music Festival which is produced by AEG Presents.
Analysis Results
Intrinsic Value $5.73
Latest Price $3.61
Relative Value 37% 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 -7.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -7.2%, 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)
2021 4.73 4.56
2022 4.39 4.07
2023 4.07 3.64
2024 3.77 3.26
2025 3.5 2.91
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 105 million. This corresponds to a present value of 84.2 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.4 million. Adding in the terminal value gives a total present value of 103 million.

There are presently 17.9 million outstanding shares, so the intrinsic value per share is 5.73.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 20,612,000
Current Cash 12,568,000
Current Liabilities 5,928,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,116,000
Change in NCWC 4,789,000
EBIT 2,600,000
Tax Provision -62,000
Depreciation and Amortization 3,046,000
Capital Expenditure -1,998,000
Unlevered Free Cash Flow 8,437,000
Current Assets 9,709,000
Current Cash 7,577,000
Current Liabilities 4,805,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,673,000
Change in NCWC -419,000
EBIT 4,845,000
Tax Provision 1,786,000
Depreciation and Amortization 4,353,000
Capital Expenditure -6,446,000
Unlevered Free Cash Flow 1,145,356
Current Assets 6,234,000
Current Cash 3,951,000
Current Liabilities 4,537,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,254,000
Change in NCWC -2,515,000
EBIT 7,144,000
Tax Provision 2,178,000
Depreciation and Amortization 3,285,000
Capital Expenditure -992,000
Unlevered Free Cash Flow 5,205,927
Current Assets 4,628,000
Current Cash 1,000
Current Liabilities 4,366,000
Current Debt 0
Non-Cash Working Capital (NCWC) 261,000
Change in NCWC -22,494,000
EBIT 7,098,000
Tax Provision -1,889,000
Depreciation and Amortization 3,566,000
Capital Expenditure -1,877,000
Unlevered Free Cash Flow -13,707,000
Current Assets 27,541,000
Current Cash 1,000
Current Liabilities 4,785,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,755,000
Change in NCWC -120,000
EBIT 6,844,000
Tax Provision 2,589,000
Depreciation and Amortization 3,433,000
Capital Expenditure -2,580,000
Unlevered Free Cash Flow 4,804,055
Current Assets 27,506,000
Current Cash 1,000
Current Liabilities 4,630,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,875,000
Change in NCWC 2,578,000
EBIT 5,981,000
Tax Provision 3,314,000
Depreciation and Amortization 5,326,000
Capital Expenditure -1,448,000
Unlevered Free Cash Flow 10,131,960
Current Assets 27,524,000
Current Cash 24,000
Current Liabilities 7,203,000
Current Debt 0
Non-Cash Working Capital (NCWC) 20,297,000
Change in NCWC 23,658,000
EBIT 8,095,000
Tax Provision 2,136,000
Depreciation and Amortization 3,262,000
Capital Expenditure -3,136,000
Unlevered Free Cash Flow 28,604,824
Current Assets 1,298,000
Current Cash 4,000
Current Liabilities 4,655,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,361,000
Change in NCWC 890,000
EBIT 8,989,000
Tax Provision 1,925,000
Depreciation and Amortization 3,291,000
Capital Expenditure -315,000
Unlevered Free Cash Flow 8,473,175
Current Assets 1,663,000
Current Cash 15,000
Current Liabilities 5,899,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,251,000
Change in NCWC -414,000
EBIT 9,185,000
Tax Provision 3,491,000
Depreciation and Amortization 3,314,000
Capital Expenditure -468,000
Unlevered Free Cash Flow 7,639,719

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