Discounted Cash Flow (DCF) Analysis Levered

EQB Inc. (EQB.TO)

$46.66

-0.77 (-1.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 523.63 | 46.66 | 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 349.39376.04497.06556.83642.91751.07877.421,025.041,197.481,398.94
Revenue (%)
Operating Cash Flow 273.59-30.36307.70325.18693.26448.19523.59611.67714.58834.80
Operating Cash Flow (%)
Capital Expenditure -9.76-20.43-20.13-27.79-38.57-34.95-40.83-47.69-55.72-65.09
Capital Expenditure (%)
Free Cash Flow 263.83-50.78287.57297.39654.68413.24482.76563.98658.86769.71

Weighted Average Cost Of Capital

Share price $ 46.66
Beta 1.714
Diluted Shares Outstanding 34.45
Cost of Debt
Tax Rate 25.07
After-tax Cost of Debt 3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.787
Total Debt 11,622.28
Total Equity 1,607.22
Total Capital 13,229.50
Debt Weighting 87.85
Equity Weighting 12.15
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 349.39376.04497.06556.83642.91751.07877.421,025.041,197.481,398.94
Operating Cash Flow 273.59-30.36307.70325.18693.26448.19523.59611.67714.58834.80
Capital Expenditure -9.76-20.43-20.13-27.79-38.57-34.95-40.83-47.69-55.72-65.09
Free Cash Flow 263.83-50.78287.57297.39654.68413.24482.76563.98658.86769.71
WACC
PV LFCF 395.82442.93495.64554.62620.61
SUM PV LFCF 2,509.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.40
Free cash flow (t + 1) 785.10
Terminal Value 32,712.48
Present Value of Terminal Value 26,376.13

Intrinsic Value

Enterprise Value 28,885.74
Net Debt 10,849.02
Equity Value 18,036.72
Shares Outstanding 34.45
Equity Value Per Share 523.63