Discounted Cash Flow (DCF) Analysis Levered

CAE Inc. (CAE.TO)

$27.92

-0.66 (-2.31%)
All numbers are in Millions, Currency in USD
Stock DCF: -0.93 | 27.92 | 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 2,8303,304.103,623.202,981.903,371.303,554.783,748.243,952.234,167.324,394.12
Revenue (%)
Operating Cash Flow 403.30530.40545.10366.60418.20498525.11553.69583.82615.59
Operating Cash Flow (%)
Capital Expenditure -188.70-338.40-384-163.60-362.80-311.08-328.02-345.87-364.69-384.54
Capital Expenditure (%)
Free Cash Flow 214.60192161.1020355.40186.92197.09207.82219.13231.06

Weighted Average Cost Of Capital

Share price $ 27.92
Beta 2.007
Diluted Shares Outstanding 312.90
Cost of Debt
Tax Rate 7.75
After-tax Cost of Debt 3.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.189
Total Debt 3,046.20
Total Equity 8,736.21
Total Capital 11,782.41
Debt Weighting 25.85
Equity Weighting 74.15
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 2,8303,304.103,623.202,981.903,371.303,554.783,748.243,952.234,167.324,394.12
Operating Cash Flow 403.30530.40545.10366.60418.20498525.11553.69583.82615.59
Capital Expenditure -188.70-338.40-384-163.60-362.80-311.08-328.02-345.87-364.69-384.54
Free Cash Flow 214.60192161.1020355.40186.92197.09207.82219.13231.06
WACC
PV LFCF 168.91160.95153.36146.13139.24
SUM PV LFCF 768.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.66
Free cash flow (t + 1) 235.68
Terminal Value 2,721.43
Present Value of Terminal Value 1,640

Intrinsic Value

Enterprise Value 2,408.59
Net Debt 2,700.10
Equity Value -291.51
Shares Outstanding 312.90
Equity Value Per Share -0.93