Discounted Cash Flow (DCF) Analysis Levered

ATCO Ltd. (ACO-X.TO)

$42.78

-0.35 (-0.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 78.73 | 42.78 | 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 4,5414,8884,7063,9444,2894,251.194,213.714,176.564,139.734,103.24
Revenue (%)
Operating Cash Flow 1,3319991,5421,8431,8641,468.401,455.451,442.621,429.901,417.29
Operating Cash Flow (%)
Capital Expenditure -1,329-1,234-1,202-1,028-1,346-1,169.09-1,158.78-1,148.57-1,138.44-1,128.40
Capital Expenditure (%)
Free Cash Flow 2-235340815518299.31296.67294.05291.46288.89

Weighted Average Cost Of Capital

Share price $ 42.78
Beta 0.741
Diluted Shares Outstanding 114.71
Cost of Debt
Tax Rate 60.13
After-tax Cost of Debt 1.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.235
Total Debt 10,151
Total Equity 4,907.40
Total Capital 15,058.40
Debt Weighting 67.41
Equity Weighting 32.59
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 4,5414,8884,7063,9444,2894,251.194,213.714,176.564,139.734,103.24
Operating Cash Flow 1,3319991,5421,8431,8641,468.401,455.451,442.621,429.901,417.29
Capital Expenditure -1,329-1,234-1,202-1,028-1,346-1,169.09-1,158.78-1,148.57-1,138.44-1,128.40
Free Cash Flow 2-235340815518299.31296.67294.05291.46288.89
WACC
PV LFCF 289.24277.05265.37254.19243.47
SUM PV LFCF 1,329.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.48
Free cash flow (t + 1) 294.67
Terminal Value 19,910.09
Present Value of Terminal Value 16,779.97

Intrinsic Value

Enterprise Value 18,109.30
Net Debt 9,078
Equity Value 9,031.30
Shares Outstanding 114.71
Equity Value Per Share 78.73