Discounted Cash Flow (DCF) Analysis Levered

Ferroglobe PLC (GSM)

$5.08

+0.07 (+1.40%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.54 | 5.08 | undervalue

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	2,274.04	1,615.22	1,144.43	1,778.91	2,597.92	2,879.54	3,191.70	3,537.69	3,921.19	4,346.27
Revenue (%)
Operating Cash Flow	73.78	-74.23	154.27	-1.34	405.02	159.20	176.46	195.59	216.79	240.29
Operating Cash Flow (%)
Capital Expenditure	-109.45	-32.63	-32.91	-27.60	-53.30	-76.66	-84.97	-94.19	-104.40	-115.71
Capital Expenditure (%)
Free Cash Flow	-35.67	-106.86	121.36	-28.94	351.72	82.54	91.48	101.40	112.39	124.58

Weighted Average Cost Of Capital

Share price	$ 5.08
Beta	2.218
Diluted Shares Outstanding	176.51
Cost of Debt
Tax Rate	26.00
After-tax Cost of Debt	-9.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.229
Total Debt	443.15
Total Equity	896.66
Total Capital	1,339.81
Debt Weighting	33.08
Equity Weighting	66.92
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	2,274.04	1,615.22	1,144.43	1,778.91	2,597.92	2,879.54	3,191.70	3,537.69	3,921.19	4,346.27
Operating Cash Flow	73.78	-74.23	154.27	-1.34	405.02	159.20	176.46	195.59	216.79	240.29
Capital Expenditure	-109.45	-32.63	-32.91	-27.60	-53.30	-76.66	-84.97	-94.19	-104.40	-115.71
Free Cash Flow	-35.67	-106.86	121.36	-28.94	351.72	82.54	91.48	101.40	112.39	124.58
WACC
PV LFCF						77.54	80.75	84.09	87.56	91.18
SUM PV LFCF										421.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.44
Free cash flow (t + 1)	127.07
Terminal Value	2,861.93
Present Value of Terminal Value	2,094.76

Intrinsic Value

Enterprise Value	2,515.89
Net Debt	125.21
Equity Value	2,390.68
Shares Outstanding	176.51
Equity Value Per Share	13.54