Discounted Cash Flow (DCF) Analysis Levered

Enerflex Ltd. (EFX.TO)

$6.9

-0.03 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.19 | 6.9 | 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 1,553.361,703.272,045.421,217.05960.16883.66813.26748.47688.84633.96
Revenue (%)
Operating Cash Flow 179.25242.8754.17220.25225.15123.70113.85104.7896.4388.75
Operating Cash Flow (%)
Capital Expenditure -57.65-132.24-263.39-133.75-57.34-73.02-67.20-61.84-56.92-52.38
Capital Expenditure (%)
Free Cash Flow 121.60110.62-209.2286.49167.8150.6946.6542.9339.5136.36

Weighted Average Cost Of Capital

Share price $ 6.9
Beta 1.359
Diluted Shares Outstanding 89.68
Cost of Debt
Tax Rate 148.44
After-tax Cost of Debt -2.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.296
Total Debt 388.44
Total Equity 618.78
Total Capital 1,007.22
Debt Weighting 38.57
Equity Weighting 61.43
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 1,553.361,703.272,045.421,217.05960.16883.66813.26748.47688.84633.96
Operating Cash Flow 179.25242.8754.17220.25225.15123.70113.85104.7896.4388.75
Capital Expenditure -57.65-132.24-263.39-133.75-57.34-73.02-67.20-61.84-56.92-52.38
Free Cash Flow 121.60110.62-209.2286.49167.8150.6946.6542.9339.5136.36
WACC
PV LFCF 48.1142.0336.7232.0828.02
SUM PV LFCF 186.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.35
Free cash flow (t + 1) 37.09
Terminal Value 1,107.17
Present Value of Terminal Value 853.18

Intrinsic Value

Enterprise Value 1,040.13
Net Debt 215.68
Equity Value 824.46
Shares Outstanding 89.68
Equity Value Per Share 9.19