Discounted Cash Flow (DCF) Analysis Levered

Guardian Capital Group Limited (GCG-A.TO)

$44.56

+0.45 (+1.02%)

All numbers are in Millions, Currency in USD

Stock DCF: 60.05 | 44.56 | undervalue

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	244.08	275.14	291.62	325.18	414.91	474.89	543.54	622.10	712.03	814.95
Revenue (%)
Operating Cash Flow	44.64	47.14	49.11	71.79	102.86	94.15	107.76	123.34	141.17	161.57
Operating Cash Flow (%)
Capital Expenditure	-5.88	-30.44	-13.77	-9.64	-15.42	-23.62	-27.04	-30.95	-35.42	-40.54
Capital Expenditure (%)
Free Cash Flow	38.76	16.70	35.34	62.15	87.44	70.53	80.72	92.39	105.75	121.03

Weighted Average Cost Of Capital

Share price	$ 44.56
Beta	1.128
Diluted Shares Outstanding	27.11
Cost of Debt
Tax Rate	17.90
After-tax Cost of Debt	0.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.091
Total Debt	129.26
Total Equity	1,208.07
Total Capital	1,337.33
Debt Weighting	9.67
Equity Weighting	90.33
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	244.08	275.14	291.62	325.18	414.91	474.89	543.54	622.10	712.03	814.95
Operating Cash Flow	44.64	47.14	49.11	71.79	102.86	94.15	107.76	123.34	141.17	161.57
Capital Expenditure	-5.88	-30.44	-13.77	-9.64	-15.42	-23.62	-27.04	-30.95	-35.42	-40.54
Free Cash Flow	38.76	16.70	35.34	62.15	87.44	70.53	80.72	92.39	105.75	121.03
WACC
PV LFCF						60.13	63.55	67.16	70.98	75.01
SUM PV LFCF										364.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.30
Free cash flow (t + 1)	123.45
Terminal Value	1,959.58
Present Value of Terminal Value	1,315.29

Intrinsic Value

Enterprise Value	1,680.08
Net Debt	52.18
Equity Value	1,627.90
Shares Outstanding	27.11
Equity Value Per Share	60.05