DCF Tool

WOW

WideOpenWest Inc – Satellite Telecommunications
WOW! is one of the nation's leading broadband providers, with an efficient, high-performing network that passes three million residential, business and wholesale consumers. WOW! provides services in 19 markets, primarily in the Midwest and Southeast, including Illinois, Michigan, Indiana, Ohio, Maryland, Alabama, Tennessee, South Carolina, Florida and Georgia. With an expansive portfolio of advanced services, including high-speed Internet services, cable TV, phone, business data, voice, and cloud services, the company is dedicated to providing outstanding service at affordable prices. WOW! also serves as a leader in exceptional human resources practices, having been recognized by the National Association for Business Resources' for six years as a Best & Brightest Company to Work For, winning the award for the last two consecutive years.
Analysis Results
Intrinsic Value $6.95
Latest Price $9.75
Relative Value 40% 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 -11.7%.

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 -11.7%, 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 88.5 79.9
2023 78.1 63.8
2024 69.0 50.8
2025 60.9 40.5
2026 53.8 32.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 630 million. This corresponds to a present value of 342 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 267 million. Adding in the terminal value gives a total present value of 609 million.

There are presently 87.7 million outstanding shares, so the intrinsic value per share is 6.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 282,000,000
Current Cash 193,200,000
Current Liabilities 320,900,000
Current Debt 17,900,000
Non-Cash Working Capital (NCWC) -214,200,000
Change in NCWC -118,200,000
EBIT 4,800,000
Tax Provision -13,800,000
Depreciation and Amortization 210,300,000
Capital Expenditure -207,700,000
Unlevered Free Cash Flow -110,800,000
Current Assets 114,800,000
Current Cash 12,400,000
Current Liabilities 235,900,000
Current Debt 37,500,000
Non-Cash Working Capital (NCWC) -96,000,000
Change in NCWC 2,800,000
EBIT 165,100,000
Tax Provision 7,800,000
Depreciation and Amortization 230,600,000
Capital Expenditure -234,100,000
Unlevered Free Cash Flow 106,391,891
Current Assets 118,700,000
Current Cash 21,000,000
Current Liabilities 227,400,000
Current Debt 30,900,000
Non-Cash Working Capital (NCWC) -98,800,000
Change in NCWC 2,000,000
EBIT 191,500,000
Tax Provision 1,500,000
Depreciation and Amortization 206,200,000
Capital Expenditure -247,500,000
Unlevered Free Cash Flow 144,620,844
Current Assets 112,400,000
Current Cash 13,200,000
Current Liabilities 224,100,000
Current Debt 24,100,000
Non-Cash Working Capital (NCWC) -100,800,000
Change in NCWC -29,200,000
EBIT 193,800,000
Tax Provision -61,800,000
Depreciation and Amortization 186,900,000
Capital Expenditure -314,100,000
Unlevered Free Cash Flow 37,400,000
Current Assets 165,200,000
Current Cash 69,400,000
Current Liabilities 191,400,000
Current Debt 24,000,000
Non-Cash Working Capital (NCWC) -71,600,000
Change in NCWC 58,000,000
EBIT 225,000,000
Tax Provision -132,500,000
Depreciation and Amortization 198,100,000
Capital Expenditure -301,300,000
Unlevered Free Cash Flow 179,800,000
Current Assets 129,500,000
Current Cash 30,800,000
Current Liabilities 251,000,000
Current Debt 22,700,000
Non-Cash Working Capital (NCWC) -129,600,000
Change in NCWC 15,800,000
EBIT 245,300,000
Tax Provision -27,300,000
Depreciation and Amortization 207,000,000
Capital Expenditure -287,500,000
Unlevered Free Cash Flow 180,600,000

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