Discounted Cash Flow (DCF) Analysis Levered

Danaos Corporation (DAC)

$59.34

+2.10 (+3.67%)

All numbers are in Millions, Currency in USD

Stock DCF: 213.14 | 59.34 | undervalue

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	451.73	458.73	447.24	461.59	689.50	778.50	878.98	992.44	1,120.53	1,265.16
Revenue (%)
Operating Cash Flow	181.07	164.69	219.88	265.68	428.11	381.14	430.34	485.88	548.60	619.41
Operating Cash Flow (%)
Capital Expenditure	-4.48	-8.25	-21.36	-170.66	-355.72	-149.67	-168.99	-190.80	-215.43	-243.24
Capital Expenditure (%)
Free Cash Flow	176.60	156.44	198.52	95.02	72.39	231.47	261.35	295.08	333.17	376.17

Weighted Average Cost Of Capital

Share price	$ 59.34
Beta	1.582
Diluted Shares Outstanding	20.58
Cost of Debt
Tax Rate	0.56
After-tax Cost of Debt	5.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.986
Total Debt	1,335.99
Total Equity	1,221.44
Total Capital	2,557.44
Debt Weighting	52.24
Equity Weighting	47.76
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	451.73	458.73	447.24	461.59	689.50	778.50	878.98	992.44	1,120.53	1,265.16
Operating Cash Flow	181.07	164.69	219.88	265.68	428.11	381.14	430.34	485.88	548.60	619.41
Capital Expenditure	-4.48	-8.25	-21.36	-170.66	-355.72	-149.67	-168.99	-190.80	-215.43	-243.24
Free Cash Flow	176.60	156.44	198.52	95.02	72.39	231.47	261.35	295.08	333.17	376.17
WACC
PV LFCF						214.47	224.36	234.70	245.52	256.85
SUM PV LFCF										1,175.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.93
Free cash flow (t + 1)	383.69
Terminal Value	6,470.40
Present Value of Terminal Value	4,417.95

Intrinsic Value

Enterprise Value	5,593.84
Net Debt	1,206.58
Equity Value	4,387.26
Shares Outstanding	20.58
Equity Value Per Share	213.14