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MSN

Emerson Radio Corp. – Audio and Video Equipment Manufacturing
emerson radio corp., together with its subsidiaries, designs, sources, imports, markets, and sells various houseware and consumer electronic products under the emerson brand in the united states and internationally. it provides houseware products, such as microwave ovens, compact refrigerators, wine products, and toaster ovens; audio products, including clock radios, bluetooth speakers, and wireless charging products; and other products comprising massagers, toothbrushes, and security products. the company also licenses its trademarks to others on a worldwide basis for various products. emerson radio corp. markets its products primarily through mass merchandisers and online marketplaces. the company was founded in 1948 and is headquartered in parsippany, new jersey.
Analysis Results
Intrinsic Value $0.01
Latest Price $0.53
Relative Value 3554% 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 -36.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is -2.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -36.6%, 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)
2024 0.0875 0.0803
2025 0.0555 0.0467
2026 0.0352 0.0272
2027 0.0223 0.0158
2028 0.0142 0.00921
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 0.206 million. This corresponds to a present value of 0.123 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.179 million. Adding in the terminal value gives a total present value of 0.302 million.

There are presently 21.0 million outstanding shares, so the intrinsic value per share is 0.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 31,095,000
Current Cash 25,268,000
Current Liabilities 4,648,000
Current Debt 1,000
Non-Cash Working Capital (NCWC) 1,180,000
Change in NCWC -1,383,000
EBIT -2,096,000
Tax Provision 0
Depreciation and Amortization 205,000
Capital Expenditure 0
Unlevered Free Cash Flow -3,274,000
Current Assets 29,513,000
Current Cash 25,576,000
Current Liabilities 1,375,000
Current Debt 1,000
Non-Cash Working Capital (NCWC) 2,563,000
Change in NCWC 592,000
EBIT -3,440,000
Tax Provision 0
Depreciation and Amortization 214,000
Capital Expenditure -2,000
Unlevered Free Cash Flow -2,636,000
Current Assets 33,592,000
Current Cash 30,290,000
Current Liabilities 1,536,000
Current Debt 205,000
Non-Cash Working Capital (NCWC) 1,971,000
Change in NCWC 200,000
EBIT -4,195,000
Tax Provision 15,000
Depreciation and Amortization 233,000
Capital Expenditure 0
Unlevered Free Cash Flow -3,762,000
Current Assets 37,356,000
Current Cash 34,377,000
Current Liabilities 1,209,000
Current Debt 1,000
Non-Cash Working Capital (NCWC) 1,771,000
Change in NCWC -2,234,000
EBIT -4,626,000
Tax Provision 457,000
Depreciation and Amortization 35,000
Capital Expenditure 0
Unlevered Free Cash Flow -6,825,000
Current Assets 41,253,000
Current Cash 36,288,000
Current Liabilities 960,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,005,000
Change in NCWC -860,000
EBIT -3,648,000
Tax Provision -352,000
Depreciation and Amortization 5,000
Capital Expenditure 0
Unlevered Free Cash Flow -4,503,000
Current Assets 47,064,000
Current Cash 41,096,000
Current Liabilities 1,103,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,865,000
Change in NCWC 1,397,000
EBIT -3,882,000
Tax Provision 3,461,000
Depreciation and Amortization 8,000
Capital Expenditure -4,000
Unlevered Free Cash Flow -2,481,000
Current Assets 56,938,000
Current Cash 52,549,000
Current Liabilities 921,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,468,000
Change in NCWC -1,949,000
EBIT -326,000
Tax Provision 172,000
Depreciation and Amortization 16,000
Capital Expenditure -5,000
Unlevered Free Cash Flow -2,264,000
Current Assets 58,326,000
Current Cash 50,251,000
Current Liabilities 2,658,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,417,000
Change in NCWC -8,540,000
EBIT -1,405,000
Tax Provision -259,000
Depreciation and Amortization 48,000
Capital Expenditure 0
Unlevered Free Cash Flow -9,897,000
Current Assets 60,926,000
Current Cash 43,485,000
Current Liabilities 3,484,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,957,000
Change in NCWC -794,000
EBIT 4,745,000
Tax Provision 3,067,000
Depreciation and Amortization 75,000
Capital Expenditure -10,000
Unlevered Free Cash Flow 1,081,944
Current Assets 77,224,000
Current Cash 58,522,000
Current Liabilities 3,951,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,751,000
Change in NCWC 8,852,000
EBIT 3,519,000
Tax Provision -1,469,000
Depreciation and Amortization 88,000
Capital Expenditure -28,000
Unlevered Free Cash Flow 12,431,000
Current Assets 82,582,000
Current Cash 66,647,000
Current Liabilities 10,079,000
Current Debt 43,000
Non-Cash Working Capital (NCWC) 5,899,000
Change in NCWC -13,619,000
EBIT 10,651,000
Tax Provision 3,666,000
Depreciation and Amortization 106,000
Capital Expenditure -111,000
Unlevered Free Cash Flow -7,012,996
Current Assets 74,949,000
Current Cash 44,960,000
Current Liabilities 10,535,000
Current Debt 64,000
Non-Cash Working Capital (NCWC) 19,518,000
Change in NCWC 10,352,000
EBIT 11,865,000
Tax Provision 2,476,000
Depreciation and Amortization 276,000
Capital Expenditure -57,000
Unlevered Free Cash Flow 20,195,135

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