Discounted Cash Flow (DCF) Analysis Levered

John Hancock Preferred Income Fund ... (HPS)

$15.2

+0.06 (+0.40%)
All numbers are in Millions, Currency in USD
Stock DCF: -8.76 | 15.2 | overvalue

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 30.7725.4544.20-37.50109.76-33.2410.06-3.050.92-0.28
Revenue (%)
Operating Cash Flow 46.1346.3045.2999.1027.29-12.963.92-1.190.36-0.11
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow ------12.963.92-1.190.36-0.11

Weighted Average Cost Of Capital

Share price $ 15.2
Beta 0.838
Diluted Shares Outstanding 31.76
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 0.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.462
Total Debt 266
Total Equity 482.77
Total Capital 748.77
Debt Weighting 35.53
Equity Weighting 64.47
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 30.7725.4544.20-37.50109.76-33.2410.06-3.050.92-0.28
Operating Cash Flow 46.1346.3045.2999.1027.29-12.963.92-1.190.36-0.11
Capital Expenditure ----------
Free Cash Flow ------12.963.92-1.190.36-0.11
WACC
PV LFCF -12.333.55-1.020.29-0.08
SUM PV LFCF -9.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.10
Free cash flow (t + 1) -0.11
Terminal Value -3.58
Present Value of Terminal Value -2.80

Intrinsic Value

Enterprise Value -12.39
Net Debt 265.90
Equity Value -278.28
Shares Outstanding 31.76
Equity Value Per Share -8.76