Discounted Cash Flow (DCF) Analysis Levered

DATA Communications Management Corp... (DCM.TO)

$2.95

+0.01 (+0.34%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.31 | 2.95 | overvalue

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	322.77	282.88	259.31	235.33	273.80	264.50	255.52	246.84	238.45	230.35
Revenue (%)
Operating Cash Flow	17.26	-0.81	47.63	26.94	22.67	22.83	22.06	21.31	20.58	19.88
Operating Cash Flow (%)
Capital Expenditure	-7.80	-4.91	-0.84	-3.22	-1.55	-3.39	-3.28	-3.17	-3.06	-2.95
Capital Expenditure (%)
Free Cash Flow	9.46	-5.73	46.80	23.72	21.13	19.44	18.78	18.14	17.53	16.93

Weighted Average Cost Of Capital

Share price	$ 2.95
Beta	3.312
Diluted Shares Outstanding	46.57
Cost of Debt
Tax Rate	29.80
After-tax Cost of Debt	5.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity	20.369
Total Debt	66.85
Total Equity	137.39
Total Capital	204.24
Debt Weighting	32.73
Equity Weighting	67.27
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	322.77	282.88	259.31	235.33	273.80	264.50	255.52	246.84	238.45	230.35
Operating Cash Flow	17.26	-0.81	47.63	26.94	22.67	22.83	22.06	21.31	20.58	19.88
Capital Expenditure	-7.80	-4.91	-0.84	-3.22	-1.55	-3.39	-3.28	-3.17	-3.06	-2.95
Free Cash Flow	9.46	-5.73	46.80	23.72	21.13	19.44	18.78	18.14	17.53	16.93
WACC
PV LFCF						16.85	14.10	11.80	9.88	8.27
SUM PV LFCF										60.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	15.41
Free cash flow (t + 1)	17.27
Terminal Value	128.78
Present Value of Terminal Value	62.90

Intrinsic Value

Enterprise Value	123.79
Net Debt	62.64
Equity Value	61.15
Shares Outstanding	46.57
Equity Value Per Share	1.31