Discounted Cash Flow (DCF) Analysis Levered

FirstService Corporation (FSV)

$163.75

-0.63 (-0.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 88.64 | 163.75 | 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 1,931.472,407.412,772.423,249.073,745.844,422.765,2226,165.697,279.908,595.48
Revenue (%)
Operating Cash Flow 99.46107.81291.76167.27105.89248.79293.76346.84409.52483.52
Operating Cash Flow (%)
Capital Expenditure -40.60-46.63-39.42-58.20-77.61-82.47-97.38-114.97-135.75-160.28
Capital Expenditure (%)
Free Cash Flow 58.8661.18252.35109.0628.28166.32196.38231.87273.77323.24

Weighted Average Cost Of Capital

Share price $ 163.75
Beta 0.905
Diluted Shares Outstanding 44.49
Cost of Debt
Tax Rate 37.58
After-tax Cost of Debt 2.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.575
Total Debt 952.16
Total Equity 7,285.89
Total Capital 8,238.06
Debt Weighting 11.56
Equity Weighting 88.44
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 1,931.472,407.412,772.423,249.073,745.844,422.765,2226,165.697,279.908,595.48
Operating Cash Flow 99.46107.81291.76167.27105.89248.79293.76346.84409.52483.52
Capital Expenditure -40.60-46.63-39.42-58.20-77.61-82.47-97.38-114.97-135.75-160.28
Free Cash Flow 58.8661.18252.35109.0628.28166.32196.38231.87273.77323.24
WACC
PV LFCF 154.16168.71184.63202.05221.12
SUM PV LFCF 930.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.89
Free cash flow (t + 1) 329.71
Terminal Value 5,597.73
Present Value of Terminal Value 3,829.18

Intrinsic Value

Enterprise Value 4,759.84
Net Debt 815.95
Equity Value 3,943.89
Shares Outstanding 44.49
Equity Value Per Share 88.64