Discounted Cash Flow (DCF) Analysis Levered

Forterra, Inc. (FRTA)

$24

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: -1.53 | 24 | 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	1,580.41	1,479.71	1,529.75	1,594.51	1,858.30	1,940.93	2,027.24	2,117.39	2,211.54	2,309.88
Revenue (%)
Operating Cash Flow	42.33	27.20	146.79	243.20	100.50	134.98	140.98	147.25	153.80	160.64
Operating Cash Flow (%)
Capital Expenditure	-52.51	-50.61	-53.71	-34.02	-65.60	-61.79	-64.54	-67.41	-70.40	-73.54
Capital Expenditure (%)
Free Cash Flow	-10.18	-23.41	93.08	209.18	34.90	73.19	76.45	79.85	83.40	87.10

Weighted Average Cost Of Capital

Share price	$ 24
Beta	2.192
Diluted Shares Outstanding	69.64
Cost of Debt
Tax Rate	24.97
After-tax Cost of Debt	5.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.084
Total Debt	1,084.50
Total Equity	1,671.46
Total Capital	2,755.96
Debt Weighting	39.35
Equity Weighting	60.65
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	1,580.41	1,479.71	1,529.75	1,594.51	1,858.30	1,940.93	2,027.24	2,117.39	2,211.54	2,309.88
Operating Cash Flow	42.33	27.20	146.79	243.20	100.50	134.98	140.98	147.25	153.80	160.64
Capital Expenditure	-52.51	-50.61	-53.71	-34.02	-65.60	-61.79	-64.54	-67.41	-70.40	-73.54
Free Cash Flow	-10.18	-23.41	93.08	209.18	34.90	73.19	76.45	79.85	83.40	87.10
WACC
PV LFCF						66.18	62.51	59.03	55.75	52.66
SUM PV LFCF										296.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.59
Free cash flow (t + 1)	88.85
Terminal Value	1,034.30
Present Value of Terminal Value	625.27

Intrinsic Value

Enterprise Value	921.41
Net Debt	1,027.70
Equity Value	-106.29
Shares Outstanding	69.64
Equity Value Per Share	-1.53