Discounted Cash Flow (DCF) Analysis Levered

Corus Entertainment Inc. (CJR-B.TO)

$1.21

-0.10 (-7.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 12.90 | 1.21 | 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	1,647.35	1,687.48	1,511.24	1,543.48	1,598.59	1,589.38	1,580.22	1,571.12	1,562.07	1,553.07
Revenue (%)
Operating Cash Flow	370.91	343.55	313.27	274.49	216.84	301.83	300.09	298.36	296.64	294.93
Operating Cash Flow (%)
Capital Expenditure	-26.42	-36.73	-19.32	-29.84	-22.21	-26.64	-26.49	-26.34	-26.19	-26.04
Capital Expenditure (%)
Free Cash Flow	344.48	306.82	293.95	244.65	194.62	275.18	273.60	272.02	270.46	268.90

Weighted Average Cost Of Capital

Share price	$ 1.21
Beta	1.736
Diluted Shares Outstanding	206.24
Cost of Debt
Tax Rate	-27.71
After-tax Cost of Debt	7.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.829
Total Debt	1,396.02
Total Equity	249.55
Total Capital	1,645.57
Debt Weighting	84.83
Equity Weighting	15.17
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	1,647.35	1,687.48	1,511.24	1,543.48	1,598.59	1,589.38	1,580.22	1,571.12	1,562.07	1,553.07
Operating Cash Flow	370.91	343.55	313.27	274.49	216.84	301.83	300.09	298.36	296.64	294.93
Capital Expenditure	-26.42	-36.73	-19.32	-29.84	-22.21	-26.64	-26.49	-26.34	-26.19	-26.04
Free Cash Flow	344.48	306.82	293.95	244.65	194.62	275.18	273.60	272.02	270.46	268.90
WACC
PV LFCF						254.09	233.27	214.15	196.60	180.49
SUM PV LFCF										1,078.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.30
Free cash flow (t + 1)	274.28
Terminal Value	4,353.60
Present Value of Terminal Value	2,922.17

Intrinsic Value

Enterprise Value	4,000.78
Net Debt	1,341.11
Equity Value	2,659.67
Shares Outstanding	206.24
Equity Value Per Share	12.90