DCF Tool

KTOS

Kratos Defense & Security Solutions Inc – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Kratos Defense & Security Solutions, Inc. develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. At Kratos, affordability is a technology, and it specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development.
Analysis Results
Intrinsic Value $0.15
Latest Price $13.90
Relative Value 9358% overvalued
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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 -26.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -26.4%, 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 3.47 3.2
2023 2.56 2.17
2024 1.88 1.47
2025 1.39 1.0
2026 1.02 0.679
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 16.0 million. This corresponds to a present value of 9.84 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.53 million. Adding in the terminal value gives a total present value of 18.4 million.

There are presently 125.0 million outstanding shares, so the intrinsic value per share is 0.15.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 758,100,000
Current Cash 349,400,000
Current Liabilities 221,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 187,600,000
Change in NCWC 1,200,000
EBIT 29,700,000
Tax Provision 3,900,000
Depreciation and Amortization 34,700,000
Capital Expenditure -46,500,000
Unlevered Free Cash Flow -6,080,434
Current Assets 764,800,000
Current Cash 380,800,000
Current Liabilities 197,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 186,400,000
Change in NCWC 19,500,000
EBIT 31,700,000
Tax Provision -73,500,000
Depreciation and Amortization 34,000,000
Capital Expenditure -35,900,000
Unlevered Free Cash Flow 49,300,000
Current Assets 522,200,000
Current Cash 172,600,000
Current Liabilities 182,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 166,900,000
Change in NCWC 19,600,000
EBIT 41,200,000
Tax Provision 4,800,000
Depreciation and Amortization 35,100,000
Capital Expenditure -26,300,000
Unlevered Free Cash Flow 59,406,185
Current Assets 494,700,000
Current Cash 182,700,000
Current Liabilities 164,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 147,300,000
Change in NCWC -6,300,000
EBIT 34,300,000
Tax Provision 4,600,000
Depreciation and Amortization 17,900,000
Capital Expenditure -22,600,000
Unlevered Free Cash Flow 5,164,367
Current Assets 471,300,000
Current Cash 129,600,000
Current Liabilities 188,900,000
Current Debt 800,000
Non-Cash Working Capital (NCWC) 153,600,000
Change in NCWC 45,100,000
EBIT 18,900,000
Tax Provision -8,200,000
Depreciation and Amortization 22,500,000
Capital Expenditure -26,500,000
Unlevered Free Cash Flow 60,000,000
Current Assets 373,100,000
Current Cash 69,100,000
Current Liabilities 196,500,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 108,500,000
Change in NCWC -12,000,000
EBIT -6,600,000
Tax Provision 8,100,000
Depreciation and Amortization 22,800,000
Capital Expenditure -9,200,000
Unlevered Free Cash Flow -5,000,000
Current Assets 320,400,000
Current Cash 28,500,000
Current Liabilities 172,400,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 120,500,000
Change in NCWC 5,300,000
EBIT -5,100,000
Tax Provision -11,400,000
Depreciation and Amortization 25,500,000
Capital Expenditure -11,300,000
Unlevered Free Cash Flow 14,400,000
Current Assets 374,900,000
Current Cash 34,700,000
Current Liabilities 226,100,000
Current Debt 1,100,000
Non-Cash Working Capital (NCWC) 115,200,000
Change in NCWC -9,700,000
EBIT 21,800,000
Tax Provision 5,100,000
Depreciation and Amortization 39,100,000
Capital Expenditure -14,200,000
Unlevered Free Cash Flow 37,000,000
Current Assets 430,300,000
Current Cash 55,700,000
Current Liabilities 251,000,000
Current Debt 1,300,000
Non-Cash Working Capital (NCWC) 124,900,000
Change in NCWC -4,000,000
EBIT 25,600,000
Tax Provision 0
Depreciation and Amortization 53,400,000
Capital Expenditure -16,600,000
Unlevered Free Cash Flow 58,400,000
Current Assets 455,400,000
Current Cash 49,000,000
Current Liabilities 279,000,000
Current Debt 1,500,000
Non-Cash Working Capital (NCWC) 128,900,000
Change in NCWC -10,300,000
EBIT 44,200,000
Tax Provision -1,600,000
Depreciation and Amortization 58,000,000
Capital Expenditure -16,600,000
Unlevered Free Cash Flow 75,300,000

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