Discounted Cash Flow (DCF) Analysis Levered

Ero Copper Corp. (ERO.TO)

$13.02

-0.35 (-2.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.02 | 13.02 | overvalue

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 115.44233.11284.84324.08482.64708.041,038.731,523.852,235.543,279.61
Revenue (%)
Operating Cash Flow 21.2482.94127.83162.84364.59318.11466.68684.641,004.391,473.48
Operating Cash Flow (%)
Capital Expenditure -58.19-101.17-106.27-117.81-181.83-290.50-426.17-625.21-917.20-1,345.56
Capital Expenditure (%)
Free Cash Flow -36.95-18.2321.5645.03182.7627.6240.5159.4387.19127.92

Weighted Average Cost Of Capital

Share price $ 13.02
Beta 2.354
Diluted Shares Outstanding 86.37
Cost of Debt
Tax Rate 15.14
After-tax Cost of Debt 7.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.101
Total Debt 66.36
Total Equity 1,124.52
Total Capital 1,190.88
Debt Weighting 5.57
Equity Weighting 94.43
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 115.44233.11284.84324.08482.64708.041,038.731,523.852,235.543,279.61
Operating Cash Flow 21.2482.94127.83162.84364.59318.11466.68684.641,004.391,473.48
Capital Expenditure -58.19-101.17-106.27-117.81-181.83-290.50-426.17-625.21-917.20-1,345.56
Free Cash Flow -36.95-18.2321.5645.03182.7627.6240.5159.4387.19127.92
WACC
PV LFCF 18.7824.2331.2640.3452.04
SUM PV LFCF 215.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 13.71
Free cash flow (t + 1) 130.47
Terminal Value 1,114.20
Present Value of Terminal Value 586.10

Intrinsic Value

Enterprise Value 801.58
Net Debt -63.77
Equity Value 865.35
Shares Outstanding 86.37
Equity Value Per Share 10.02