Discounted Cash Flow (DCF) Analysis Levered

FirstService Corporation (FSV.TO)

$165.66

-4.60 (-2.70%)

All numbers are in Millions, Currency in USD

Stock DCF: 125.95 | 165.66 | 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	1,705.46	1,931.47	2,407.41	2,772.42	3,249.07	3,819.68	4,490.49	5,279.11	6,206.24	7,296.18
Revenue (%)
Operating Cash Flow	115.63	99.46	107.81	291.76	167.27	245.07	288.11	338.71	398.19	468.12
Operating Cash Flow (%)
Capital Expenditure	-36.26	-40.60	-46.63	-39.42	-58.20	-71.64	-84.22	-99.01	-116.40	-136.84
Capital Expenditure (%)
Free Cash Flow	79.38	58.86	61.18	252.35	109.06	173.43	203.89	239.70	281.79	331.28

Weighted Average Cost Of Capital

Share price	$ 165.66
Beta	0.947
Diluted Shares Outstanding	44.40
Cost of Debt
Tax Rate	35.31
After-tax Cost of Debt	1.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.268
Total Debt	823.19
Total Equity	7,355.47
Total Capital	8,178.66
Debt Weighting	10.07
Equity Weighting	89.93
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	1,705.46	1,931.47	2,407.41	2,772.42	3,249.07	3,819.68	4,490.49	5,279.11	6,206.24	7,296.18
Operating Cash Flow	115.63	99.46	107.81	291.76	167.27	245.07	288.11	338.71	398.19	468.12
Capital Expenditure	-36.26	-40.60	-46.63	-39.42	-58.20	-71.64	-84.22	-99.01	-116.40	-136.84
Free Cash Flow	79.38	58.86	61.18	252.35	109.06	173.43	203.89	239.70	281.79	331.28
WACC
PV LFCF						162.60	179.22	197.54	217.73	239.99
SUM PV LFCF										997.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.66
Free cash flow (t + 1)	337.91
Terminal Value	7,251.19
Present Value of Terminal Value	5,252.93

Intrinsic Value

Enterprise Value	6,250.01
Net Debt	657.52
Equity Value	5,592.48
Shares Outstanding	44.40
Equity Value Per Share	125.95