Discounted Cash Flow (DCF) Analysis Levered

AirBoss of America Corp. (BOS.TO)

$14.95

-0.24 (-1.58%)

All numbers are in Millions, Currency in USD

Stock DCF: 16.59 | 14.95 | 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	$ 14.95
Beta	1.600
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	10.403
Total Debt	80.61
Total Equity	423.06
Total Capital	503.67
Debt Weighting	16.00
Equity Weighting	84.00
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						20.59	22.70	25.03	27.60	30.43
SUM PV LFCF										126.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.45
Free cash flow (t + 1)	48.75
Terminal Value	654.43
Present Value of Terminal Value	416.66

Intrinsic Value

Enterprise Value	543.01
Net Debt	73.48
Equity Value	469.53
Shares Outstanding	28.30
Equity Value Per Share	16.59