Discounted Cash Flow (DCF) Analysis Levered

VAALCO Energy, Inc. (EGY)

$5.24

+0.04 (+0.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 32.78 | 5.24 | 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	77.03	120.02	96.77	77.41	227.94	348.12	531.67	812	1,240.12	1,893.98
Revenue (%)
Operating Cash Flow	6.66	37.18	26.47	27.45	50.12	86.63	132.30	202.06	308.60	471.31
Operating Cash Flow (%)
Capital Expenditure	-1.81	-14.13	-10.35	-24.33	-39.06	-51.09	-78.03	-119.17	-182.01	-277.97
Capital Expenditure (%)
Free Cash Flow	4.85	23.05	16.12	3.12	11.05	35.54	54.27	82.89	126.59	193.34

Weighted Average Cost Of Capital

Share price	$ 5.24
Beta	1.577
Diluted Shares Outstanding	58.76
Cost of Debt
Tax Rate	-36.90
After-tax Cost of Debt	0.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.293
Total Debt	10.23
Total Equity	307.88
Total Capital	318.11
Debt Weighting	3.22
Equity Weighting	96.78
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	77.03	120.02	96.77	77.41	227.94	348.12	531.67	812	1,240.12	1,893.98
Operating Cash Flow	6.66	37.18	26.47	27.45	50.12	86.63	132.30	202.06	308.60	471.31
Capital Expenditure	-1.81	-14.13	-10.35	-24.33	-39.06	-51.09	-78.03	-119.17	-182.01	-277.97
Free Cash Flow	4.85	23.05	16.12	3.12	11.05	35.54	54.27	82.89	126.59	193.34
WACC
PV LFCF						32.32	44.89	62.34	86.59	120.27
SUM PV LFCF										346.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.96
Free cash flow (t + 1)	197.21
Terminal Value	2,477.45
Present Value of Terminal Value	1,541.10

Intrinsic Value

Enterprise Value	1,887.51
Net Debt	-38.45
Equity Value	1,925.95
Shares Outstanding	58.76
Equity Value Per Share	32.78