Discounted Cash Flow (DCF) Analysis Levered

Hardwoods Distribution Inc. (HDI.TO)

$34

+0.01 (+0.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 48.63 | 34 | 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 824.68832.78897.15976.591,616.201,951.802,357.092,846.543,437.634,151.45
Revenue (%)
Operating Cash Flow 14.242.9571.0564.19-65.4248.8959.0471.3186.11103.99
Operating Cash Flow (%)
Capital Expenditure -2.06-3.20-2.76-2.45-7.47-6.45-7.79-9.41-11.37-13.73
Capital Expenditure (%)
Free Cash Flow 12.18-0.2568.2961.75-72.8842.4451.2561.8974.7490.27

Weighted Average Cost Of Capital

Share price $ 34
Beta 1.759
Diluted Shares Outstanding 21.60
Cost of Debt
Tax Rate 25.07
After-tax Cost of Debt 1.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.130
Total Debt 570.59
Total Equity 734.54
Total Capital 1,305.13
Debt Weighting 43.72
Equity Weighting 56.28
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 824.68832.78897.15976.591,616.201,951.802,357.092,846.543,437.634,151.45
Operating Cash Flow 14.242.9571.0564.19-65.4248.8959.0471.3186.11103.99
Capital Expenditure -2.06-3.20-2.76-2.45-7.47-6.45-7.79-9.41-11.37-13.73
Free Cash Flow 12.18-0.2568.2961.75-72.8842.4451.2561.8974.7490.27
WACC
PV LFCF 39.7144.8750.7157.3064.75
SUM PV LFCF 257.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.87
Free cash flow (t + 1) 92.07
Terminal Value 1,890.57
Present Value of Terminal Value 1,356.17

Intrinsic Value

Enterprise Value 1,613.51
Net Debt 562.83
Equity Value 1,050.68
Shares Outstanding 21.60
Equity Value Per Share 48.63