KODK - Kodak Stock: Great Transformation Strategy And Significant Cost Of Equity

• Kodak focuses on print and advanced materials as well as chemicals.
• The management is working on reducing non-essential spending, and is focusing on the company’s core business model.
• Eastman Kodak Company reported 401 million in cash, 98% more than that in December 2020.
• I assumed growing depreciation and capital expenditures of $35-$53 million. The result was an unlevered free cash flow of $77-$117 million from 2022 to 2025.
• Summing both the terminal value and the discounted free cash flow from 2021 to 2025, the result is equal to an equity valuation of 344 million. If we divide by the share count of 78 million, the implied fair price is $4.4.

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