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 $354.06
Latest Price $80.23
Relative Value 77% 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 25.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 25.2%, 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)
2023 48.8 47.1
2024 61.1 57.0
2025 76.5 68.8
2026 95.8 83.2
2027 120 101
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 3600 million. This corresponds to a present value of 2910 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 357 million. Adding in the terminal value gives a total present value of 3270 million.

There are presently 9.23 million outstanding shares, so the intrinsic value per share is 354.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 51,161,000
Current Cash 35,980,000
Current Liabilities 31,501,000
Current Debt 11,896,000
Non-Cash Working Capital (NCWC) -4,424,000
Change in NCWC -5,097,000
EBIT 71,926,000
Tax Provision 14,071,000
Depreciation and Amortization 12,391,000
Capital Expenditure -24,003,000
Unlevered Free Cash Flow 38,385,902
Current Assets 52,950,000
Current Cash 35,686,000
Current Liabilities 23,025,000
Current Debt 6,434,000
Non-Cash Working Capital (NCWC) 673,000
Change in NCWC 5,845,000
EBIT 51,734,000
Tax Provision 3,989,000
Depreciation and Amortization 8,238,000
Capital Expenditure -13,511,000
Unlevered Free Cash Flow 46,261,097
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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