Discounted Cash Flow (DCF) Analysis Levered

AirBoss of America Corp. (BOS.TO)

$8.44

-0.47 (-5.27%)

All numbers are in Millions, Currency in USD

Stock DCF: 14.34 | 8.44 | 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	289.86	316.60	328.13	501.57	586.86	708.24	854.72	1,031.50	1,244.84	1,502.31
Revenue (%)
Operating Cash Flow	5.81	19.87	11.71	104.40	2.02	46.75	56.42	68.09	82.18	99.17
Operating Cash Flow (%)
Capital Expenditure	-7.29	-8.23	-19.48	-14.93	-17.99	-24.22	-29.23	-35.27	-42.57	-51.37
Capital Expenditure (%)
Free Cash Flow	-1.48	11.63	-7.78	89.47	-15.97	22.53	27.19	32.82	39.61	47.80

Weighted Average Cost Of Capital

Share price	$ 8.44
Beta	1.796
Diluted Shares Outstanding	28.30
Cost of Debt
Tax Rate	14.36
After-tax Cost of Debt	4.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.358
Total Debt	80.61
Total Equity	238.84
Total Capital	319.45
Debt Weighting	25.23
Equity Weighting	74.77
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	289.86	316.60	328.13	501.57	586.86	708.24	854.72	1,031.50	1,244.84	1,502.31
Operating Cash Flow	5.81	19.87	11.71	104.40	2.02	46.75	56.42	68.09	82.18	99.17
Capital Expenditure	-7.29	-8.23	-19.48	-14.93	-17.99	-24.22	-29.23	-35.27	-42.57	-51.37
Free Cash Flow	-1.48	11.63	-7.78	89.47	-15.97	22.53	27.19	32.82	39.61	47.80
WACC
PV LFCF						12.47	13.64	14.92	16.31	17.84
SUM PV LFCF										123.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.36
Free cash flow (t + 1)	48.75
Terminal Value	583.19
Present Value of Terminal Value	356.25

Intrinsic Value

Enterprise Value	479.31
Net Debt	73.48
Equity Value	405.83
Shares Outstanding	28.30
Equity Value Per Share	14.34