Discounted Cash Flow (DCF) Analysis Levered

Doman Building Materials Group Ltd. (DBM.TO)

$7.61

-0.05 (-0.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 55.85 | 7.61 | 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	1,135.95	1,291.30	1,334.20	1,613.80	2,543.67	3,151.45	3,904.44	4,837.36	5,993.17	7,425.16
Revenue (%)
Operating Cash Flow	30.75	-4.03	67.90	164.17	49.29	123.50	153.01	189.57	234.87	290.99
Operating Cash Flow (%)
Capital Expenditure	-6.47	-10.21	-7.32	-2.81	-6.86	-14.83	-18.37	-22.76	-28.20	-34.94
Capital Expenditure (%)
Free Cash Flow	24.28	-14.24	60.59	161.37	42.43	108.68	134.64	166.81	206.67	256.05

Weighted Average Cost Of Capital

Share price	$ 7.61
Beta	1.573
Diluted Shares Outstanding	83.61
Cost of Debt
Tax Rate	23.08
After-tax Cost of Debt	2.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.064
Total Debt	841.90
Total Equity	636.29
Total Capital	1,478.19
Debt Weighting	56.96
Equity Weighting	43.04
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	1,135.95	1,291.30	1,334.20	1,613.80	2,543.67	3,151.45	3,904.44	4,837.36	5,993.17	7,425.16
Operating Cash Flow	30.75	-4.03	67.90	164.17	49.29	123.50	153.01	189.57	234.87	290.99
Capital Expenditure	-6.47	-10.21	-7.32	-2.81	-6.86	-14.83	-18.37	-22.76	-28.20	-34.94
Free Cash Flow	24.28	-14.24	60.59	161.37	42.43	108.68	134.64	166.81	206.67	256.05
WACC
PV LFCF						102.47	119.70	139.82	163.33	190.80
SUM PV LFCF										716.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.06
Free cash flow (t + 1)	261.17
Terminal Value	6,432.81
Present Value of Terminal Value	4,793.39

Intrinsic Value

Enterprise Value	5,509.50
Net Debt	839.57
Equity Value	4,669.93
Shares Outstanding	83.61
Equity Value Per Share	55.85