Discounted Cash Flow (DCF) Analysis Levered

Chemtrade Logistics Income Fund (CHE-UN.TO)

$8.52

+0.07 (+0.83%)

All numbers are in Millions, Currency in USD

Stock DCF: 34.23 | 8.52 | 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	1,595.75	1,532.86	1,379.64	1,368.48	1,813.38	1,893.92	1,978.04	2,065.89	2,157.64	2,253.47
Revenue (%)
Operating Cash Flow	244.46	139.48	261.95	219.04	369.19	302.16	315.58	329.60	344.24	359.52
Operating Cash Flow (%)
Capital Expenditure	-92.37	-96.30	-77.09	-86.14	-115.44	-114.84	-119.94	-125.27	-130.83	-136.64
Capital Expenditure (%)
Free Cash Flow	152.10	43.18	184.87	132.90	253.75	187.32	195.64	204.33	213.40	222.88

Weighted Average Cost Of Capital

Share price	$ 8.52
Beta	1.415
Diluted Shares Outstanding	92.69
Cost of Debt
Tax Rate	35.50
After-tax Cost of Debt	3.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.934
Total Debt	1,042.88
Total Equity	789.69
Total Capital	1,832.57
Debt Weighting	56.91
Equity Weighting	43.09
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	1,595.75	1,532.86	1,379.64	1,368.48	1,813.38	1,893.92	1,978.04	2,065.89	2,157.64	2,253.47
Operating Cash Flow	244.46	139.48	261.95	219.04	369.19	302.16	315.58	329.60	344.24	359.52
Capital Expenditure	-92.37	-96.30	-77.09	-86.14	-115.44	-114.84	-119.94	-125.27	-130.83	-136.64
Free Cash Flow	152.10	43.18	184.87	132.90	253.75	187.32	195.64	204.33	213.40	222.88
WACC
PV LFCF						175.19	171.13	167.17	163.29	159.51
SUM PV LFCF										836.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.92
Free cash flow (t + 1)	227.34
Terminal Value	4,620.66
Present Value of Terminal Value	3,306.81

Intrinsic Value

Enterprise Value	4,143.10
Net Debt	970.32
Equity Value	3,172.79
Shares Outstanding	92.69
Equity Value Per Share	34.23