Discounted Cash Flow (DCF) Analysis Levered

Golden Ocean Group Limited (GOGL)

$9.49

+0.21 (+2.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.00 | 9.49 | 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 460.02656.07705.80607.941,203.181,606.982,146.282,866.593,828.635,113.54
Revenue (%)
Operating Cash Flow 93.54186.55158.43140.64560.40452.92604.93807.951,079.101,441.25
Operating Cash Flow (%)
Capital Expenditure -159.55-158.24-44.12-25.27-445-341.30-455.85-608.83-813.16-1,086.06
Capital Expenditure (%)
Free Cash Flow -66.0128.31114.31115.37115.40111.62149.08199.12265.94355.19

Weighted Average Cost Of Capital

Share price $ 9.49
Beta 1.318
Diluted Shares Outstanding 193.12
Cost of Debt
Tax Rate 0.07
After-tax Cost of Debt 2.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.877
Total Debt 1,418.84
Total Equity 1,832.71
Total Capital 3,251.55
Debt Weighting 43.64
Equity Weighting 56.36
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 460.02656.07705.80607.941,203.181,606.982,146.282,866.593,828.635,113.54
Operating Cash Flow 93.54186.55158.43140.64560.40452.92604.93807.951,079.101,441.25
Capital Expenditure -159.55-158.24-44.12-25.27-445-341.30-455.85-608.83-813.16-1,086.06
Free Cash Flow -66.0128.31114.31115.37115.40111.62149.08199.12265.94355.19
WACC
PV LFCF 104.61130.95163.91205.18256.83
SUM PV LFCF 861.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.70
Free cash flow (t + 1) 362.29
Terminal Value 7,708.39
Present Value of Terminal Value 5,573.68

Intrinsic Value

Enterprise Value 6,435.15
Net Debt 1,221.81
Equity Value 5,213.34
Shares Outstanding 193.12
Equity Value Per Share 27.00