Discounted Cash Flow (DCF) Analysis Levered

Evoqua Water Technologies Corp. (AQUA)

$49.88

+0.47 (+0.95%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.61 | 49.88 | 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	1,339.54	1,444.44	1,429.46	1,464.43	1,737.08	1,858.06	1,987.46	2,125.88	2,273.94	2,432.31
Revenue (%)
Operating Cash Flow	81.02	125.20	158.36	178.71	181.40	180.01	192.54	205.95	220.30	235.64
Operating Cash Flow (%)
Capital Expenditure	-82.66	-95.30	-94.99	-79.07	-85.33	-110.46	-118.15	-126.38	-135.18	-144.60
Capital Expenditure (%)
Free Cash Flow	-1.65	29.90	63.37	99.63	96.08	69.55	74.39	79.57	85.11	91.04

Weighted Average Cost Of Capital

Share price	$ 49.88
Beta	1.789
Diluted Shares Outstanding	122.90
Cost of Debt
Tax Rate	-4.16
After-tax Cost of Debt	3.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.255
Total Debt	952.57
Total Equity	6,130.25
Total Capital	7,082.82
Debt Weighting	13.45
Equity Weighting	86.55
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	1,339.54	1,444.44	1,429.46	1,464.43	1,737.08	1,858.06	1,987.46	2,125.88	2,273.94	2,432.31
Operating Cash Flow	81.02	125.20	158.36	178.71	181.40	180.01	192.54	205.95	220.30	235.64
Capital Expenditure	-82.66	-95.30	-94.99	-79.07	-85.33	-110.46	-118.15	-126.38	-135.18	-144.60
Free Cash Flow	-1.65	29.90	63.37	99.63	96.08	69.55	74.39	79.57	85.11	91.04
WACC
PV LFCF						56.34	54.25	52.23	50.28	48.41
SUM PV LFCF										290.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.10
Free cash flow (t + 1)	92.86
Terminal Value	1,020.46
Present Value of Terminal Value	602.87

Intrinsic Value

Enterprise Value	893.41
Net Debt	818.56
Equity Value	74.85
Shares Outstanding	122.90
Equity Value Per Share	0.61