NYSE: TREC - Trecora Resources

Price = EPS * (1 + CAGR EPS) / (Key Rate * Excess Key Rate)
EPS = Earning Per Share
CAGR EPS = CAGR 5 EPS
Key Rate — Key rate
Excess Key Rate — Desired excess of the key rate
EPS = 0.364
CAGR EPS = -27.52%
Key Rate = 0.0458
Excess Key Rate = 2
Price = 0.364 * (1 + -27.52%) / (0.0458 * 2) = 2.88

Price = (Terminal Value + Company Value) / Count shares
Price - Fair price
Terminal Value — cost in the post-forecast period
Company Value — cost during the forecast period
Count shares - Number of shares
Terminal Value = Discount Ebitda(5) * (1 + Ebitda Yield) / (WACC - Ebitda Yield)
Company Value = ∑ (Discount Ebitda / (1 + WACC) ^ 5)
Discount Ebitda(5) = 0.0217
Ebitda Yield = 0.0334
WACC = (Interest Expense / Debt) * (Weight Cost Debt) * (1 - Tax) + Cost Of Equity * Weight Debt
Interest Expense - Debt servicing costs
Debt - Debt
Weight Debt - Capitalization weight relative to debt
Weight Cost Debt - Debt weight relative to capitalization
Tax - Tax
Interest Expense = 0
Debt = 0.0481
Market Cap = 0.2326
Weight Debt = Market Cap / (Market Cap + Debt) = 0.2326 / (0.2326 + 0.0481) = 0.8286
Weight Cost Debt = 100% - 0.8286 = 0.1714
Tax = 0.21
Cost Of Equity — discount rate
Cost Of Equity = k(f) + β * Risk Premium + Country Premium (Damodaran table)
k(f) — risk-free rate of return
β (beta) — determines the measure of risk of a stock (asset) in relation to the market and shows the sensitivity of changes in the stock's profitability in relation to changes in market profitability. Beta can be calculated not only for an individual stock, but also for an investment portfolio.
Risk Premium — risk premium - premium for the risk of investing in shares
Country Premium - country risk
k(f) = 2.6
β = 0
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.6 + 0 * 5.94 + 0 = 0.026
WACC = (0 / 0.0481) * (100% - 0.8286) * (1 - 0.21) + 0.026 + 0.8286 = 0.0215
Terminal Value = Discount (0.0217 * (1 + 0.0334) / (0.0215 - 0.0334)) = 0.6751
Company Value = ∑ (0.0217 / (1 + 0.0215) ^ 5) = 0.1016
Price = (Terminal Value + Company Value) / Count shares = (0.6751 + 0.1016) / 25000000 = 31.07

Price = (Terminal Value + Company Value) / Count shares
Price - Fair price
Terminal Value — cost in the post-forecast period
Company Value — cost during the forecast period
Count shares - Number of shares
Terminal Value = Discount FCF(5) * (1 + FCF Yield) / (WACC - FCF Yield)
Company Value = ∑ (Discount FCF / (1 + WACC) ^ 5)
Discount FCF(5) = -0.0056
FCF Yield = -0.1087
WACC = (Interest Expense / Debt) * (Weight Cost Debt) * (1 - Tax) + Cost Of Equity * Weight Debt
Interest Expense - Debt servicing costs
Debt - Debt
Weight Debt - Capitalization weight relative to debt
Weight Cost Debt - Debt weight relative to capitalization
Tax - Tax
Interest Expense = 0
Debt = 0.0481
Market Cap = 0.2326
Weight Debt = Market Cap / (Market Cap + Debt) = 0.2326 / (0.2326 + 0.0481) = 0.8286
Weight Cost Debt = 100% - 0.8286 = 0.1714
Tax = 0.21
Cost Of Equity — discount rate
Cost Of Equity = k(f) + β * Risk Premium + Country Premium (Damodaran table)
k(f) — risk-free rate of return
β (beta) — determines the measure of risk of a stock (asset) in relation to the market and shows the sensitivity of changes in the stock's profitability in relation to changes in market profitability. Beta can be calculated not only for an individual stock, but also for an investment portfolio.
Risk Premium — risk premium - premium for the risk of investing in shares
Country Premium - country risk
k(f) = 2.6
β = 0
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.6 + 0 * 5.94 + 0 = 0.026
WACC = (0 / 0.0481) * (100% - 0.8286) * (1 - 0.21) + 0.026 + 0.8286 = 0.0215
Terminal Value = Discount (-0.0056 * (1 + -0.1087) / (0.0215 - -0.1087)) = -0.046
Company Value = ∑ (-0.0056 / (1 + 0.0215) ^ 5) = -0.0359
Price = (Terminal Value + Company Value) / Count shares = (-0.046 + -0.0359) / 25000000 = -3.27