Discounted Cash Flow (DCF) Analysis Levered

ABC arbitrage SA (ABCA.PA)

7 €

-0.05 (-0.71%)

All numbers are in Millions, Currency in USD

Stock DCF: 118.29 | 7 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	32.33	33.51	31.74	69.08	64.32	81.87	104.20	132.62	168.80	214.84
Revenue (%)
Operating Cash Flow	27.14	22.53	26.89	24.33	34.05	53.06	67.53	85.95	109.39	139.23
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	53.06	67.53	85.95	109.39	139.23

Weighted Average Cost Of Capital

Share price	$ 7
Beta	0.215
Diluted Shares Outstanding	58.51
Cost of Debt
Tax Rate	20.69
After-tax Cost of Debt	0.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity	3.856
Total Debt	5.39
Total Equity	409.58
Total Capital	414.97
Debt Weighting	1.30
Equity Weighting	98.70
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	32.33	33.51	31.74	69.08	64.32	81.87	104.20	132.62	168.80	214.84
Operating Cash Flow	27.14	22.53	26.89	24.33	34.05	53.06	67.53	85.95	109.39	139.23
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	53.06	67.53	85.95	109.39	139.23
WACC
PV LFCF						51.11	62.66	76.83	94.20	115.49
SUM PV LFCF										400.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.81
Free cash flow (t + 1)	142.02
Terminal Value	7,846.31
Present Value of Terminal Value	6,508.33

Intrinsic Value

Enterprise Value	6,908.63
Net Debt	-12.86
Equity Value	6,921.49
Shares Outstanding	58.51
Equity Value Per Share	118.29