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	233.10	284.84	324.08	489.91	426.39	505.46	599.19	710.31	842.03	998.17
Revenue (%)
Operating Cash Flow	82.94	127.83	162.84	364.59	143.39	241.36	286.12	339.17	402.07	476.63
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	-18.23	21.56	45.03	182.76	-152.43	15.36	18.21	21.59	25.59	30.34

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	233.10	284.84	324.08	489.91	426.39	505.46	599.19	710.31	842.03	998.17
Operating Cash Flow	82.94	127.83	162.84	364.59	143.39	241.36	286.12	339.17	402.07	476.63
Capital Expenditure	-101.17	-106.27	-117.81	-181.83	-295.82	-226	-267.91	-317.59	-376.48	-446.29
Free Cash Flow	-18.23	21.56	45.03	182.76	-152.43	15.36	18.21	21.59	25.59	30.34
WACC
PV LFCF						13.75	14.58	15.47	16.40	17.40
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