DCF Tool

ESCA

Escalade, Inc. – Sporting and Athletic Goods Manufacturing
Escalade, Inc. manufactures and sells sporting goods and office and graphic arts products. The Company's products include archery equipment, game tables, paper drills, paper shredders, and letter openers, among others. Escalade markets its products worldwide.
Analysis Results
Intrinsic Value $170.91
Latest Price $12.57
Relative Value 93% 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 23.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.6%, 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 62.4 58.2
2023 77.1 67.2
2024 95.4 77.6
2025 118 89.6
2026 146 103
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2910 million. This corresponds to a present value of 1930 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 396 million. Adding in the terminal value gives a total present value of 2320 million.

There are presently 13.6 million outstanding shares, so the intrinsic value per share is 170.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 171,055,000
Current Cash 4,374,000
Current Liabilities 48,193,000
Current Debt 7,143,000
Non-Cash Working Capital (NCWC) 125,631,000
Change in NCWC 29,810,000
EBIT 31,896,000
Tax Provision 6,144,000
Depreciation and Amortization 4,835,000
Capital Expenditure -9,696,000
Unlevered Free Cash Flow 50,430,092
Current Assets 145,398,000
Current Cash 3,505,000
Current Liabilities 46,072,000
Current Debt 0
Non-Cash Working Capital (NCWC) 95,821,000
Change in NCWC 32,863,000
EBIT 33,032,000
Tax Provision 6,988,000
Depreciation and Amortization 4,016,000
Capital Expenditure -5,455,000
Unlevered Free Cash Flow 57,444,651
Current Assets 86,915,000
Current Cash 5,882,000
Current Liabilities 18,210,000
Current Debt 135,000
Non-Cash Working Capital (NCWC) 62,958,000
Change in NCWC -5,378,000
EBIT 9,275,000
Tax Provision 1,676,000
Depreciation and Amortization 4,031,000
Capital Expenditure -2,185,000
Unlevered Free Cash Flow 4,003,029
Current Assets 87,863,000
Current Cash 2,824,000
Current Liabilities 16,703,000
Current Debt 0
Non-Cash Working Capital (NCWC) 68,336,000
Change in NCWC 7,940,000
EBIT 13,938,000
Tax Provision 6,000,000
Depreciation and Amortization 3,857,000
Capital Expenditure -2,818,000
Unlevered Free Cash Flow 19,754,304
Current Assets 80,260,000
Current Cash 1,572,000
Current Liabilities 19,542,000
Current Debt 1,250,000
Non-Cash Working Capital (NCWC) 60,396,000
Change in NCWC 2,954,000
EBIT 16,234,000
Tax Provision 1,456,000
Depreciation and Amortization 3,910,000
Capital Expenditure -2,745,000
Unlevered Free Cash Flow 18,829,722
Current Assets 75,623,000
Current Cash 1,013,000
Current Liabilities 18,418,000
Current Debt 1,250,000
Non-Cash Working Capital (NCWC) 57,442,000
Change in NCWC 3,330,000
EBIT 16,255,000
Tax Provision 4,049,000
Depreciation and Amortization 5,244,000
Capital Expenditure -2,653,000
Unlevered Free Cash Flow 17,941,249
Current Assets 72,815,000
Current Cash 1,982,000
Current Liabilities 38,307,000
Current Debt 21,586,000
Non-Cash Working Capital (NCWC) 54,112,000
Change in NCWC 3,903,000
EBIT 15,811,000
Tax Provision 4,068,000
Depreciation and Amortization 5,218,000
Capital Expenditure -5,067,000
Unlevered Free Cash Flow 15,761,443
Current Assets 68,851,000
Current Cash 4,682,000
Current Liabilities 31,746,000
Current Debt 17,786,000
Non-Cash Working Capital (NCWC) 50,209,000
Change in NCWC -6,545,000
EBIT 19,427,000
Tax Provision 6,438,000
Depreciation and Amortization 4,383,000
Capital Expenditure -2,663,000
Unlevered Free Cash Flow 8,279,853
Current Assets 81,216,000
Current Cash 4,046,000
Current Liabilities 43,679,000
Current Debt 23,263,000
Non-Cash Working Capital (NCWC) 56,754,000
Change in NCWC 8,772,000
EBIT 17,431,000
Tax Provision 6,883,000
Depreciation and Amortization 4,618,000
Capital Expenditure -2,355,000
Unlevered Free Cash Flow 21,276,548
Current Assets 70,965,000
Current Cash 3,744,000
Current Liabilities 38,309,000
Current Debt 19,070,000
Non-Cash Working Capital (NCWC) 47,982,000
Change in NCWC 6,310,000
EBIT 13,830,000
Tax Provision 4,392,000
Depreciation and Amortization 4,322,000
Capital Expenditure -2,423,000
Unlevered Free Cash Flow 22,039,000

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