Discounted Cash Flow (DCF) Analysis Levered

CGG (CGG.PA)

0.6628 €

+0.00 (+0.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.91 | 0.6628 | undervalue

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	1,182	1,342.10	878.70	1,062.20	927.40	897.74	869.04	841.25	814.35	788.31
Revenue (%)
Operating Cash Flow	365.30	751.40	264.30	336.70	345.50	333.82	323.15	312.82	302.81	293.13
Operating Cash Flow (%)
Capital Expenditure	-300.80	-261	-303.10	-226.90	-259.80	-231.20	-223.80	-216.65	-209.72	-203.01
Capital Expenditure (%)
Free Cash Flow	64.50	490.40	-38.80	109.80	85.70	102.63	99.35	96.17	93.09	90.12

Weighted Average Cost Of Capital

Share price	$ 0.6,628
Beta	2.417
Diluted Shares Outstanding	711.53
Cost of Debt
Tax Rate	48.38
After-tax Cost of Debt	4.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.217
Total Debt	1,249.20
Total Equity	471.60
Total Capital	1,720.80
Debt Weighting	72.59
Equity Weighting	27.41
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	1,182	1,342.10	878.70	1,062.20	927.40	897.74	869.04	841.25	814.35	788.31
Operating Cash Flow	365.30	751.40	264.30	336.70	345.50	333.82	323.15	312.82	302.81	293.13
Capital Expenditure	-300.80	-261	-303.10	-226.90	-259.80	-231.20	-223.80	-216.65	-209.72	-203.01
Free Cash Flow	64.50	490.40	-38.80	109.80	85.70	102.63	99.35	96.17	93.09	90.12
WACC
PV LFCF						89.34	80.69	72.88	65.82	59.45
SUM PV LFCF										394.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.18
Free cash flow (t + 1)	91.92
Terminal Value	1,774.52
Present Value of Terminal Value	1,254.62

Intrinsic Value

Enterprise Value	1,649.22
Net Debt	998.70
Equity Value	650.52
Shares Outstanding	711.53
Equity Value Per Share	0.91