Discounted Cash Flow (DCF) Analysis Levered

Andrew Peller Limited (ADW-A.TO)

$6.41

+0.19 (+3.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.62 | 6.41 | overvalue

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	363.90	381.80	382.31	393.04	373.94	376.75	379.58	382.42	385.29	388.19
Revenue (%)
Operating Cash Flow	21.75	49.04	31.54	41.12	15.59	31.42	31.66	31.90	32.14	32.38
Operating Cash Flow (%)
Capital Expenditure	-20.37	-23.39	-23.31	-36.54	-22.90	-25.05	-25.24	-25.42	-25.62	-25.81
Capital Expenditure (%)
Free Cash Flow	1.37	25.66	8.24	4.58	-7.31	6.38	6.42	6.47	6.52	6.57

Weighted Average Cost Of Capital

Share price	$ 6.41
Beta	0.654
Diluted Shares Outstanding	35.47
Cost of Debt
Tax Rate	26.98
After-tax Cost of Debt	3.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.935
Total Debt	208.33
Total Equity	227.37
Total Capital	435.70
Debt Weighting	47.81
Equity Weighting	52.19
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	363.90	381.80	382.31	393.04	373.94	376.75	379.58	382.42	385.29	388.19
Operating Cash Flow	21.75	49.04	31.54	41.12	15.59	31.42	31.66	31.90	32.14	32.38
Capital Expenditure	-20.37	-23.39	-23.31	-36.54	-22.90	-25.05	-25.24	-25.42	-25.62	-25.81
Free Cash Flow	1.37	25.66	8.24	4.58	-7.31	6.38	6.42	6.47	6.52	6.57
WACC
PV LFCF						6.09	5.86	5.65	5.43	5.23
SUM PV LFCF										28.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.66
Free cash flow (t + 1)	6.70
Terminal Value	251.93
Present Value of Terminal Value	200.62

Intrinsic Value

Enterprise Value	228.89
Net Debt	207.03
Equity Value	21.86
Shares Outstanding	35.47
Equity Value Per Share	0.62