Discounted Cash Flow (DCF) Analysis Levered

High Liner Foods Incorporated (HLF.TO)

$10.71

+0.05 (+0.47%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.26 | 10.71 | overvalue

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	1,048.53	942.22	827.45	875.41	1,069.71	1,084.88	1,100.27	1,115.87	1,131.69	1,147.74
Revenue (%)
Operating Cash Flow	56.93	51.61	103	28.68	-76.16	42.34	42.94	43.54	44.16	44.79
Operating Cash Flow (%)
Capital Expenditure	-13.96	-6.57	-8.95	-20.32	-20.67	-15.98	-16.20	-16.43	-16.67	-16.90
Capital Expenditure (%)
Free Cash Flow	42.97	45.04	94.04	8.37	-96.83	26.36	26.73	27.11	27.49	27.88

Weighted Average Cost Of Capital

Share price	$ 10.71
Beta	0.615
Diluted Shares Outstanding	35.07
Cost of Debt
Tax Rate	16.85
After-tax Cost of Debt	3.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.636
Total Debt	380.69
Total Equity	375.59
Total Capital	756.28
Debt Weighting	50.34
Equity Weighting	49.66
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	1,048.53	942.22	827.45	875.41	1,069.71	1,084.88	1,100.27	1,115.87	1,131.69	1,147.74
Operating Cash Flow	56.93	51.61	103	28.68	-76.16	42.34	42.94	43.54	44.16	44.79
Capital Expenditure	-13.96	-6.57	-8.95	-20.32	-20.67	-15.98	-16.20	-16.43	-16.67	-16.90
Free Cash Flow	42.97	45.04	94.04	8.37	-96.83	26.36	26.73	27.11	27.49	27.88
WACC
PV LFCF						24.95	23.94	22.98	22.06	21.17
SUM PV LFCF										115.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.66
Free cash flow (t + 1)	28.44
Terminal Value	777.12
Present Value of Terminal Value	590.11

Intrinsic Value

Enterprise Value	705.22
Net Debt	380.53
Equity Value	324.68
Shares Outstanding	35.07
Equity Value Per Share	9.26