Discounted Cash Flow (DCF) Analysis Levered

Ensign Energy Services Inc. (ESI.TO)

$2.55

+0.08 (+3.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.07 | 2.55 | 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 1,000.651,156.361,592.25936.82995.591,041.311,089.121,139.121,191.431,246.13
Revenue (%)
Operating Cash Flow 135.15152.13269.57246.97178.64183.06191.46200.26209.45219.07
Operating Cash Flow (%)
Capital Expenditure -123.76-80.04-136.01-50.24-65.25-82.78-86.58-90.56-94.72-99.07
Capital Expenditure (%)
Free Cash Flow 11.3872.09133.57196.73113.39100.28104.88109.70114.73120

Weighted Average Cost Of Capital

Share price $ 2.55
Beta 2.902
Diluted Shares Outstanding 163.20
Cost of Debt
Tax Rate 17.99
After-tax Cost of Debt 5.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.455
Total Debt 1,463.47
Total Equity 416.15
Total Capital 1,879.62
Debt Weighting 77.86
Equity Weighting 22.14
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 1,000.651,156.361,592.25936.82995.591,041.311,089.121,139.121,191.431,246.13
Operating Cash Flow 135.15152.13269.57246.97178.64183.06191.46200.26209.45219.07
Capital Expenditure -123.76-80.04-136.01-50.24-65.25-82.78-86.58-90.56-94.72-99.07
Free Cash Flow 11.3872.09133.57196.73113.39100.28104.88109.70114.73120
WACC
PV LFCF 79.3476.7574.2471.8269.48
SUM PV LFCF 434.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.12
Free cash flow (t + 1) 122.40
Terminal Value 2,000.02
Present Value of Terminal Value 1,353.64

Intrinsic Value

Enterprise Value 1,788.07
Net Debt 1,450.17
Equity Value 337.91
Shares Outstanding 163.20
Equity Value Per Share 2.07