Discounted Cash Flow (DCF) Analysis Levered

Canlan Ice Sports Corp. (ICE.TO)

$4

+0.10 (+2.56%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.38 | 4 | 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	85.41	87.64	88.34	39.26	40.39	35.42	31.06	27.23	23.88	20.94
Revenue (%)
Operating Cash Flow	10.94	12.57	8.90	-8.79	12.14	3.18	2.79	2.44	2.14	1.88
Operating Cash Flow (%)
Capital Expenditure	-4.83	-5.90	-21.88	-1.45	-0.52	-2.99	-2.62	-2.30	-2.01	-1.76
Capital Expenditure (%)
Free Cash Flow	6.11	6.67	-12.98	-10.24	11.61	0.19	0.17	0.15	0.13	0.11

Weighted Average Cost Of Capital

Share price	$ 4
Beta	1.043
Diluted Shares Outstanding	107.49
Cost of Debt
Tax Rate	57.11
After-tax Cost of Debt	2.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.615
Total Debt	55.02
Total Equity	429.94
Total Capital	484.96
Debt Weighting	11.34
Equity Weighting	88.66
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	85.41	87.64	88.34	39.26	40.39	35.42	31.06	27.23	23.88	20.94
Operating Cash Flow	10.94	12.57	8.90	-8.79	12.14	3.18	2.79	2.44	2.14	1.88
Capital Expenditure	-4.83	-5.90	-21.88	-1.45	-0.52	-2.99	-2.62	-2.30	-2.01	-1.76
Free Cash Flow	6.11	6.67	-12.98	-10.24	11.61	0.19	0.17	0.15	0.13	0.11
WACC
PV LFCF						0.18	0.15	0.12	0.10	0.08
SUM PV LFCF										0.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.87
Free cash flow (t + 1)	0.12
Terminal Value	1.98
Present Value of Terminal Value	1.36

Intrinsic Value

Enterprise Value	1.98
Net Debt	42.99
Equity Value	-41.01
Shares Outstanding	107.49
Equity Value Per Share	-0.38