Discounted Cash Flow (DCF) Analysis Levered

CECO Environmental Corp. (CECE)

$11.65

+0.25 (+2.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.79 | 11.65 | 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	345.05	337.34	341.87	316.01	324.14	319.37	314.67	310.05	305.49	300.99
Revenue (%)
Operating Cash Flow	6.57	21.95	10.23	4.42	13.30	10.80	10.64	10.48	10.33	10.18
Operating Cash Flow (%)
Capital Expenditure	-1.03	-3.09	-5.65	-3.94	-2.62	-3.14	-3.10	-3.05	-3.01	-2.96
Capital Expenditure (%)
Free Cash Flow	5.54	18.86	4.57	0.48	10.68	7.65	7.54	7.43	7.32	7.21

Weighted Average Cost Of Capital

Share price	$ 11.65
Beta	1.232
Diluted Shares Outstanding	35.59
Cost of Debt
Tax Rate	69.49
After-tax Cost of Debt	1.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.507
Total Debt	74.96
Total Equity	414.68
Total Capital	489.64
Debt Weighting	15.31
Equity Weighting	84.69
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	345.05	337.34	341.87	316.01	324.14	319.37	314.67	310.05	305.49	300.99
Operating Cash Flow	6.57	21.95	10.23	4.42	13.30	10.80	10.64	10.48	10.33	10.18
Capital Expenditure	-1.03	-3.09	-5.65	-3.94	-2.62	-3.14	-3.10	-3.05	-3.01	-2.96
Free Cash Flow	5.54	18.86	4.57	0.48	10.68	7.65	7.54	7.43	7.32	7.21
WACC
PV LFCF						7.07	6.44	5.86	5.33	4.85
SUM PV LFCF										29.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.24
Free cash flow (t + 1)	7.36
Terminal Value	117.89
Present Value of Terminal Value	79.35

Intrinsic Value

Enterprise Value	108.90
Net Debt	45.05
Equity Value	63.85
Shares Outstanding	35.59
Equity Value Per Share	1.79