DCF Tool

RICK

RCI Hospitality Holdings Inc – Theater Companies and Dinner Theaters
With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.
Analysis Results
Intrinsic Value $47.02
Latest Price $57.32
Relative Value 22% 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 16.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.3%, 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 26.7 24.1
2023 31.1 25.3
2024 36.1 26.6
2025 42.0 27.9
2026 48.9 29.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 570 million. This corresponds to a present value of 309 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 133 million. Adding in the terminal value gives a total present value of 443 million.

There are presently 9.42 million outstanding shares, so the intrinsic value per share is 47.02.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 105,900,000
Current Cash 71,372,000
Current Liabilities 46,050,000
Current Debt 12,868,000
Non-Cash Working Capital (NCWC) 1,346,000
Change in NCWC 6,518,000
EBIT 103,468,000
Tax Provision 7,978,000
Depreciation and Amortization 16,476,000
Capital Expenditure -27,022,000
Unlevered Free Cash Flow 87,350,195
Current Assets 31,433,000
Current Cash 15,605,000
Current Liabilities 37,304,000
Current Debt 16,304,000
Non-Cash Working Capital (NCWC) -5,172,000
Change in NCWC -7,392,000
EBIT 13,294,000
Tax Provision -493,000
Depreciation and Amortization 8,836,000
Capital Expenditure -5,736,000
Unlevered Free Cash Flow 9,002,000
Current Assets 34,771,000
Current Cash 14,097,000
Current Liabilities 34,208,000
Current Debt 15,754,000
Non-Cash Working Capital (NCWC) 2,220,000
Change in NCWC -2,058,000
EBIT 37,321,000
Tax Provision 4,863,000
Depreciation and Amortization 9,072,000
Capital Expenditure -20,708,000
Unlevered Free Cash Flow 16,123,919
Current Assets 36,802,000
Current Cash 17,726,000
Current Liabilities 33,845,000
Current Debt 19,047,000
Non-Cash Working Capital (NCWC) 4,278,000
Change in NCWC 1,629,000
EBIT 36,746,000
Tax Provision -3,118,000
Depreciation and Amortization 7,722,000
Capital Expenditure -25,263,000
Unlevered Free Cash Flow 20,834,000
Current Assets 26,242,000
Current Cash 9,922,000
Current Liabilities 31,111,000
Current Debt 17,440,000
Non-Cash Working Capital (NCWC) 2,649,000
Change in NCWC -904,000
EBIT 30,451,000
Tax Provision 6,359,000
Depreciation and Amortization 6,920,000
Capital Expenditure -11,249,000
Unlevered Free Cash Flow 11,992,270
Current Assets 29,387,000
Current Cash 11,327,000
Current Liabilities 24,457,000
Current Debt 9,950,000
Non-Cash Working Capital (NCWC) 3,553,000
Change in NCWC 4,733,000
EBIT 26,609,000
Tax Provision 2,657,000
Depreciation and Amortization 7,173,000
Capital Expenditure -28,148,000
Unlevered Free Cash Flow 4,927,274
Current Assets 20,608,000
Current Cash 8,634,000
Current Liabilities 22,854,000
Current Debt 9,700,000
Non-Cash Working Capital (NCWC) -1,180,000
Change in NCWC 12,908,000
EBIT 26,908,000
Tax Provision 5,164,000
Depreciation and Amortization 6,894,000
Capital Expenditure -19,259,000
Unlevered Free Cash Flow 17,633,087
Current Assets 23,351,000
Current Cash 10,560,000
Current Liabilities 39,194,000
Current Debt 12,315,000
Non-Cash Working Capital (NCWC) -14,088,000
Change in NCWC -3,442,000
EBIT 25,144,000
Tax Provision 5,916,000
Depreciation and Amortization 6,316,000
Capital Expenditure -21,359,000
Unlevered Free Cash Flow -2,136,122
Current Assets 20,681,000
Current Cash 11,211,000
Current Liabilities 28,946,000
Current Debt 8,830,000
Non-Cash Working Capital (NCWC) -10,646,000
Change in NCWC -2,525,000
EBIT 22,129,000
Tax Provision 5,501,000
Depreciation and Amortization 5,314,000
Capital Expenditure -9,675,000
Unlevered Free Cash Flow 7,152,369
Current Assets 14,708,000
Current Cash 6,579,000
Current Liabilities 22,853,000
Current Debt 6,603,000
Non-Cash Working Capital (NCWC) -8,121,000
Change in NCWC -5,370,000
EBIT 16,845,000
Tax Provision 4,374,000
Depreciation and Amortization 4,921,000
Capital Expenditure -6,898,000
Unlevered Free Cash Flow 3,525,234

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