Discounted Cash Flow (DCF) Analysis Levered

Largo Inc. (LGO.TO)

$7.91

-0.42 (-5.04%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.49 | 7.91 | undervalue

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 133.38382.82107.18119.99198.28293.56434.63643.48952.701,410.50
Revenue (%)
Operating Cash Flow 46.60258.49106.63-59.5139.78101.22149.86221.88328.50486.35
Operating Cash Flow (%)
Capital Expenditure -15.43-13.94-38.57-18.11-27.40-47.03-69.63-103.10-152.64-225.99
Capital Expenditure (%)
Free Cash Flow 31.17244.5568.05-77.6112.3854.1980.23118.78175.86260.37

Weighted Average Cost Of Capital

Share price $ 7.91
Beta 1.647
Diluted Shares Outstanding 65.05
Cost of Debt
Tax Rate 28.93
After-tax Cost of Debt 3.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.408
Total Debt 17.55
Total Equity 514.51
Total Capital 532.06
Debt Weighting 3.30
Equity Weighting 96.70
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 133.38382.82107.18119.99198.28293.56434.63643.48952.701,410.50
Operating Cash Flow 46.60258.49106.63-59.5139.78101.22149.86221.88328.50486.35
Capital Expenditure -15.43-13.94-38.57-18.11-27.40-47.03-69.63-103.10-152.64-225.99
Free Cash Flow 31.17244.5568.05-77.6112.3854.1980.23118.78175.86260.37
WACC
PV LFCF 48.7564.9386.48115.18153.41
SUM PV LFCF 468.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.16
Free cash flow (t + 1) 265.57
Terminal Value 2,899.28
Present Value of Terminal Value 1,708.23

Intrinsic Value

Enterprise Value 2,176.97
Net Debt -66.24
Equity Value 2,243.21
Shares Outstanding 65.05
Equity Value Per Share 34.49