Discounted Cash Flow (DCF) Analysis Levered

Dream Unlimited Corp. (DRM.TO)

$27.55

-0.34 (-1.22%)

All numbers are in Millions, Currency in USD

Stock DCF: -6.14 | 27.55 | overvalue

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	356.96	339.87	580.43	347.62	325.92	341.92	358.71	376.32	394.80	414.18
Revenue (%)
Operating Cash Flow	114.57	-97.14	252.38	-82.50	67.02	29.97	31.44	32.98	34.60	36.30
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	29.97	31.44	32.98	34.60	36.30

Weighted Average Cost Of Capital

Share price	$ 27.55
Beta	1.213
Diluted Shares Outstanding	44.75
Cost of Debt
Tax Rate	12.59
After-tax Cost of Debt	1.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.376
Total Debt	1,305.30
Total Equity	1,232.95
Total Capital	2,538.25
Debt Weighting	51.43
Equity Weighting	48.57
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	356.96	339.87	580.43	347.62	325.92	341.92	358.71	376.32	394.80	414.18
Operating Cash Flow	114.57	-97.14	252.38	-82.50	67.02	29.97	31.44	32.98	34.60	36.30
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	29.97	31.44	32.98	34.60	36.30
WACC
PV LFCF						28.43	28.30	28.17	28.04	27.91
SUM PV LFCF										140.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.40
Free cash flow (t + 1)	37.03
Terminal Value	1,089.08
Present Value of Terminal Value	837.26

Intrinsic Value

Enterprise Value	978.11
Net Debt	1,252.73
Equity Value	-274.62
Shares Outstanding	44.75
Equity Value Per Share	-6.14