Discounted Cash Flow (DCF) Analysis Levered
Air Canada (AC.TO)
$18.31
-0.09 (-0.49%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 18,065 | 19,131 | 5,833 | 6,400 | 16,556 | 20,893.62 | 26,367.68 | 33,275.93 | 41,994.12 | 52,996.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,695 | 5,712 | -2,353 | -1,563 | 2,368 | -237.46 | -299.68 | -378.19 | -477.28 | -602.33 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,197 | -2,025 | -1,202 | -1,073 | -1,572 | -2,908.98 | -3,671.13 | -4,632.95 | -5,846.77 | -7,378.60 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 498 | 3,687 | -3,555 | -2,636 | 796 | -3,146.45 | -3,970.81 | -5,011.14 | -6,324.05 | -7,980.93 |
Weighted Average Cost Of Capital
| Share price | $ 18.31 |
|---|---|
| Beta | 2.405 |
| Diluted Shares Outstanding | 358 |
| Cost of Debt | |
| Tax Rate | -11.55 |
| After-tax Cost of Debt | 5.49% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.916 |
| Total Debt | 16,306 |
| Total Equity | 6,554.98 |
| Total Capital | 22,860.98 |
| Debt Weighting | 71.33 |
| Equity Weighting | 28.67 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 18,065 | 19,131 | 5,833 | 6,400 | 16,556 | 20,893.62 | 26,367.68 | 33,275.93 | 41,994.12 | 52,996.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,695 | 5,712 | -2,353 | -1,563 | 2,368 | -237.46 | -299.68 | -378.19 | -477.28 | -602.33 |
| Capital Expenditure | -2,197 | -2,025 | -1,202 | -1,073 | -1,572 | -2,908.98 | -3,671.13 | -4,632.95 | -5,846.77 | -7,378.60 |
| Free Cash Flow | 498 | 3,687 | -3,555 | -2,636 | 796 | -3,146.45 | -3,970.81 | -5,011.14 | -6,324.05 | -7,980.93 |
| WACC | ||||||||||
| PV LFCF | -2,908.26 | -3,392.38 | -3,957.09 | -4,615.80 | -5,384.16 | |||||
| SUM PV LFCF | -20,257.68 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.19 |
| Free cash flow (t + 1) | -8,140.55 |
| Terminal Value | -131,511.26 |
| Present Value of Terminal Value | -88,721.18 |
Intrinsic Value
| Enterprise Value | -108,978.86 |
|---|---|
| Net Debt | 13,613 |
| Equity Value | -122,591.86 |
| Shares Outstanding | 358 |
| Equity Value Per Share | -342.44 |