Discounted Cash Flow (DCF) Analysis Levered

Ero Copper Corp. (ERO)

$13.54

+0.82 (+6.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.09 | 13.54 | 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 233.10284.84324.08489.91426.39505.46599.19710.31842.03998.17
Revenue (%)
Operating Cash Flow 82.94127.83162.84364.59143.39241.36286.12339.17402.07476.63
Operating Cash Flow (%)
Capital Expenditure -101.17-106.27-117.81-181.83-295.82-226-267.91-317.59-376.48-446.29
Capital Expenditure (%)
Free Cash Flow -18.2321.5645.03182.76-152.4315.3618.2121.5925.5930.34

Weighted Average Cost Of Capital

Share price $ 13.54
Beta 2.154
Diluted Shares Outstanding 92.17
Cost of Debt
Tax Rate 18.45
After-tax Cost of Debt 4.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.422
Total Debt 429.02
Total Equity 1,247.99
Total Capital 1,677.01
Debt Weighting 25.58
Equity Weighting 74.42
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 233.10284.84324.08489.91426.39505.46599.19710.31842.03998.17
Operating Cash Flow 82.94127.83162.84364.59143.39241.36286.12339.17402.07476.63
Capital Expenditure -101.17-106.27-117.81-181.83-295.82-226-267.91-317.59-376.48-446.29
Free Cash Flow -18.2321.5645.03182.76-152.4315.3618.2121.5925.5930.34
WACC
PV LFCF 13.7514.5815.4716.4017.40
SUM PV LFCF 77.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.76
Free cash flow (t + 1) 30.94
Terminal Value 317.06
Present Value of Terminal Value 181.85

Intrinsic Value

Enterprise Value 259.45
Net Debt 251.32
Equity Value 8.13
Shares Outstanding 92.17
Equity Value Per Share 0.09