Discounted Cash Flow (DCF) Analysis Levered

Boralex Inc. (BLX.TO)

$38.36

+1.13 (+3.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.10 | 38.36 | overvalue

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	419	479	574	633	691	783.58	888.57	1,007.63	1,142.64	1,295.73
Revenue (%)
Operating Cash Flow	145	202	294	362	345	368.46	417.83	473.81	537.30	609.29
Operating Cash Flow (%)
Capital Expenditure	-271	-282	-177	-156	-179	-321.17	-364.20	-413	-468.33	-531.08
Capital Expenditure (%)
Free Cash Flow	-126	-80	117	206	166	47.29	53.63	60.81	68.96	78.20

Weighted Average Cost Of Capital

Share price	$ 38.36
Beta	0.404
Diluted Shares Outstanding	102.77
Cost of Debt
Tax Rate	61.36
After-tax Cost of Debt	1.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.406
Total Debt	3,909
Total Equity	3,942.44
Total Capital	7,851.44
Debt Weighting	49.79
Equity Weighting	50.21
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	419	479	574	633	691	783.58	888.57	1,007.63	1,142.64	1,295.73
Operating Cash Flow	145	202	294	362	345	368.46	417.83	473.81	537.30	609.29
Capital Expenditure	-271	-282	-177	-156	-179	-321.17	-364.20	-413	-468.33	-531.08
Free Cash Flow	-126	-80	117	206	166	47.29	53.63	60.81	68.96	78.20
WACC
PV LFCF						45.77	50.24	55.14	60.52	66.42
SUM PV LFCF										278.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.32
Free cash flow (t + 1)	79.77
Terminal Value	6,042.90
Present Value of Terminal Value	5,132.44

Intrinsic Value

Enterprise Value	5,410.52
Net Debt	3,653
Equity Value	1,757.52
Shares Outstanding	102.77
Equity Value Per Share	17.10