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	1,553.36	1,703.27	2,045.42	1,217.05	960.16	883.66	813.26	748.47	688.84	633.96
Revenue (%)
Operating Cash Flow	179.25	242.87	54.17	220.25	225.15	123.70	113.85	104.78	96.43	88.75
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	121.60	110.62	-209.22	86.49	167.81	50.69	46.65	42.93	39.51	36.36

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	1,553.36	1,703.27	2,045.42	1,217.05	960.16	883.66	813.26	748.47	688.84	633.96
Operating Cash Flow	179.25	242.87	54.17	220.25	225.15	123.70	113.85	104.78	96.43	88.75
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	121.60	110.62	-209.22	86.49	167.81	50.69	46.65	42.93	39.51	36.36
WACC
PV LFCF						48.11	42.03	36.72	32.08	28.02
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