Discounted Cash Flow (DCF) Analysis Levered

Helix Energy Solutions Group, Inc. (HLX)

$7.42

-0.21 (-2.75%)

All numbers are in Millions, Currency in USD

Stock DCF: 3.51 | 7.42 | 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	739.82	751.91	733.55	674.73	873.10	918.01	965.23	1,014.87	1,067.07	1,121.96
Revenue (%)
Operating Cash Flow	196.74	169.67	98.80	140.12	51.11	163.86	172.29	181.15	190.47	200.26
Operating Cash Flow (%)
Capital Expenditure	-137.08	-140.85	-20.24	-8.32	-33.50	-82.79	-87.05	-91.53	-96.23	-101.18
Capital Expenditure (%)
Free Cash Flow	59.66	28.82	78.56	131.79	17.60	81.07	85.24	89.62	94.23	99.08

Weighted Average Cost Of Capital

Share price	$ 7.42
Beta	2.794
Diluted Shares Outstanding	151.28
Cost of Debt
Tax Rate	-16.76
After-tax Cost of Debt	4.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	16.688
Total Debt	469.68
Total Equity	1,122.47
Total Capital	1,592.14
Debt Weighting	29.50
Equity Weighting	70.50
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	739.82	751.91	733.55	674.73	873.10	918.01	965.23	1,014.87	1,067.07	1,121.96
Operating Cash Flow	196.74	169.67	98.80	140.12	51.11	163.86	172.29	181.15	190.47	200.26
Capital Expenditure	-137.08	-140.85	-20.24	-8.32	-33.50	-82.79	-87.05	-91.53	-96.23	-101.18
Free Cash Flow	59.66	28.82	78.56	131.79	17.60	81.07	85.24	89.62	94.23	99.08
WACC
PV LFCF						44.10	41.05	38.21	35.57	33.11
SUM PV LFCF										312.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.95
Free cash flow (t + 1)	101.06
Terminal Value	922.93
Present Value of Terminal Value	502.04

Intrinsic Value

Enterprise Value	814.62
Net Debt	283.07
Equity Value	531.55
Shares Outstanding	151.28
Equity Value Per Share	3.51