Discounted Cash Flow (DCF) Analysis Levered

BRP Inc. (DOOO)

$65.99

+0.06 (+0.09%)
All numbers are in Millions, Currency in USD
Stock DCF: 77.43 | 65.99 | 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 5,243.806,052.705,952.907,647.9010,033.4011,875.5814,05616,636.7619,691.3523,306.79
Revenue (%)
Operating Cash Flow 561.20555.50954.20770649.501,245.761,474.491,745.212,065.642,444.91
Operating Cash Flow (%)
Capital Expenditure -298.60-330.70-279.90-697.70-659.40-749.46-887.07-1,049.94-1,242.71-1,470.88
Capital Expenditure (%)
Free Cash Flow 262.60224.80674.3072.30-9.90496.30587.42695.28822.93974.03

Weighted Average Cost Of Capital

Share price $ 65.99
Beta 2.402
Diluted Shares Outstanding 80.95
Cost of Debt
Tax Rate 25.90
After-tax Cost of Debt 3.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity 15.496
Total Debt 3,016.10
Total Equity 5,341.63
Total Capital 8,357.73
Debt Weighting 36.09
Equity Weighting 63.91
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 5,243.806,052.705,952.907,647.9010,033.4011,875.5814,05616,636.7619,691.3523,306.79
Operating Cash Flow 561.20555.50954.20770649.501,245.761,474.491,745.212,065.642,444.91
Capital Expenditure -298.60-330.70-279.90-697.70-659.40-749.46-887.07-1,049.94-1,242.71-1,470.88
Free Cash Flow 262.60224.80674.3072.30-9.90496.30587.42695.28822.93974.03
WACC
PV LFCF 402.66429.29457.67487.93520.19
SUM PV LFCF 2,550.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.02
Free cash flow (t + 1) 993.51
Terminal Value 11,014.51
Present Value of Terminal Value 6,530.69

Intrinsic Value

Enterprise Value 9,081.64
Net Debt 2,813.80
Equity Value 6,267.84
Shares Outstanding 80.95
Equity Value Per Share 77.43