Discounted Cash Flow (DCF) Analysis Levered

ERAMET S.A. (ERA.PA)

83.85 €

-2.15 (-2.50%)

All numbers are in Millions, Currency in USD

Stock DCF: 12.47 | 83.85 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,749	3,683	3,553	3,668	5,014	5,448.24	5,920.09	6,432.80	6,989.92	7,595.28
Revenue (%)
Operating Cash Flow	437	86	309	643	991	653.60	710.21	771.72	838.55	911.18
Operating Cash Flow (%)
Capital Expenditure	-297	-456	-360	-312	-530	-539.51	-586.23	-637	-692.17	-752.12
Capital Expenditure (%)
Free Cash Flow	140	-370	-51	331	461	114.10	123.98	134.72	146.38	159.06

Weighted Average Cost Of Capital

Share price	$ 83.85
Beta	1.627
Diluted Shares Outstanding	79.87
Cost of Debt
Tax Rate	38.02
After-tax Cost of Debt	3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.382
Total Debt	2,004
Total Equity	6,696.88
Total Capital	8,700.88
Debt Weighting	23.03
Equity Weighting	76.97
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,749	3,683	3,553	3,668	5,014	5,448.24	5,920.09	6,432.80	6,989.92	7,595.28
Operating Cash Flow	437	86	309	643	991	653.60	710.21	771.72	838.55	911.18
Capital Expenditure	-297	-456	-360	-312	-530	-539.51	-586.23	-637	-692.17	-752.12
Free Cash Flow	140	-370	-51	331	461	114.10	123.98	134.72	146.38	159.06
WACC
PV LFCF						79.25	78.61	77.98	77.35	76.73
SUM PV LFCF										512.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.54
Free cash flow (t + 1)	162.24
Terminal Value	2,151.75
Present Value of Terminal Value	1,364.36

Intrinsic Value

Enterprise Value	1,876.86
Net Debt	881
Equity Value	995.86
Shares Outstanding	79.87
Equity Value Per Share	12.47