Discounted Cash Flow (DCF) Analysis Levered

Héroux-Devtek Inc. (HRX.TO)

$11.65

-0.80 (-6.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.83 | 11.65 | undervalue

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 386.56483.88613570.68536.09588.21645.41708.16777.02852.57
Revenue (%)
Operating Cash Flow 56.1269.9752.5789.1963.1776.4383.8692.01100.96110.78
Operating Cash Flow (%)
Capital Expenditure -9.93-12.86-22.24-21.90-20.15-19.35-21.24-23.30-25.57-28.05
Capital Expenditure (%)
Free Cash Flow 46.1957.1130.3367.2943.0157.0762.6268.7175.3982.72

Weighted Average Cost Of Capital

Share price $ 11.65
Beta 1.825
Diluted Shares Outstanding 36.52
Cost of Debt
Tax Rate 19.67
After-tax Cost of Debt 2.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.440
Total Debt 236.53
Total Equity 425.49
Total Capital 662.02
Debt Weighting 35.73
Equity Weighting 64.27
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 386.56483.88613570.68536.09588.21645.41708.16777.02852.57
Operating Cash Flow 56.1269.9752.5789.1963.1776.4383.8692.01100.96110.78
Capital Expenditure -9.93-12.86-22.24-21.90-20.15-19.35-21.24-23.30-25.57-28.05
Free Cash Flow 46.1957.1130.3367.2943.0157.0762.6268.7175.3982.72
WACC
PV LFCF 52.3852.7653.1353.5153.89
SUM PV LFCF 265.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.95
Free cash flow (t + 1) 84.38
Terminal Value 1,214.06
Present Value of Terminal Value 790.87

Intrinsic Value

Enterprise Value 1,056.54
Net Debt 149.83
Equity Value 906.70
Shares Outstanding 36.52
Equity Value Per Share 24.83