Discounted Cash Flow (DCF) Analysis Levered

GTT Communications, Inc. (GTT)

$2.36

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.36 | 2.36 | undervalue

Free Cash Flow

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 369.25521.69827.901,490.801,727.802,574.193,835.215,713.958,513.0312,683.29
Revenue (%)
Operating Cash Flow 24.6560.5463.4082.40107.10193.91288.91430.43641.29955.43
Operating Cash Flow (%)
Capital Expenditure -14.07-44.19-58.40-77.80-102.40-156.92-233.79-348.32-518.96-773.18
Capital Expenditure (%)
Free Cash Flow 10.5816.3554.604.7036.9955.1182.11122.33182.26

Weighted Average Cost Of Capital

Share price $ 2.36
Beta 1.445
Diluted Shares Outstanding 56.27
Cost of Debt
Tax Rate -3.12
After-tax Cost of Debt 5.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.365
Total Debt 3,302.30
Total Equity 132.79
Total Capital 3,435.09
Debt Weighting 96.13
Equity Weighting 3.87
Wacc

Build Up Free Cash Flow

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 369.25521.69827.901,490.801,727.802,574.193,835.215,713.958,513.0312,683.29
Operating Cash Flow 24.6560.5463.4082.40107.10193.91288.91430.43641.29955.43
Capital Expenditure -14.07-44.19-58.40-77.80-102.40-156.92-233.79-348.32-518.96-773.18
Free Cash Flow 10.5816.3554.604.7036.9955.1182.11122.33182.26
WACC
PV LFCF 34.8748.9868.8096.64135.74
SUM PV LFCF 385.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.07
Free cash flow (t + 1) 185.90
Terminal Value 4,567.59
Present Value of Terminal Value 3,401.92

Intrinsic Value

Enterprise Value 3,786.97
Net Debt 3,260.50
Equity Value 526.47
Shares Outstanding 56.27
Equity Value Per Share 9.36