Discounted Cash Flow (DCF) Analysis Levered

Amerigo Resources Ltd. (ARG.TO)

$1.355

+0.04 (+2.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 1.74 | 1.355 | 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 194.31201.68175.22178.38300.58346.40399.21460.08530.22611.06
Revenue (%)
Operating Cash Flow 32.7427.159.7119.7893.1353.9962.2271.7082.6495.23
Operating Cash Flow (%)
Capital Expenditure -14.69-35.96-10.68-2.79-11.96-25.65-29.56-34.07-39.27-45.25
Capital Expenditure (%)
Free Cash Flow 18.05-8.80-0.9616.9881.1728.3432.6637.6343.3749.98

Weighted Average Cost Of Capital

Share price $ 1.355
Beta 2.908
Diluted Shares Outstanding 183.85
Cost of Debt
Tax Rate 34.18
After-tax Cost of Debt 6.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.280
Total Debt 33.85
Total Equity 249.11
Total Capital 282.96
Debt Weighting 11.96
Equity Weighting 88.04
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 194.31201.68175.22178.38300.58346.40399.21460.08530.22611.06
Operating Cash Flow 32.7427.159.7119.7893.1353.9962.2271.7082.6495.23
Capital Expenditure -14.69-35.96-10.68-2.79-11.96-25.65-29.56-34.07-39.27-45.25
Free Cash Flow 18.05-8.80-0.9616.9881.1728.3432.6637.6343.3749.98
WACC
PV LFCF 24.4224.2624.1023.9423.78
SUM PV LFCF 120.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 16.02
Free cash flow (t + 1) 50.98
Terminal Value 363.64
Present Value of Terminal Value 172.99

Intrinsic Value

Enterprise Value 293.48
Net Debt -25.95
Equity Value 319.43
Shares Outstanding 183.85
Equity Value Per Share 1.74