Discounted Cash Flow (DCF) Analysis Levered

Martifer SGPS, S.A. (MAR.LS)

1.26 €

-0.04 (-3.08%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.60 | 1.26 | 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	200.59	235.91	226.12	209.32	190.40	188.97	187.55	186.14	184.74	183.35
Revenue (%)
Operating Cash Flow	13.52	10.71	10.98	6.24	13.34	9.87	9.80	9.72	9.65	9.58
Operating Cash Flow (%)
Capital Expenditure	-1.85	-0.37	-1.76	-1.80	-1.16	-1.26	-1.25	-1.24	-1.23	-1.22
Capital Expenditure (%)
Free Cash Flow	11.67	10.34	9.22	4.44	12.18	8.62	8.55	8.49	8.42	8.36

Weighted Average Cost Of Capital

Share price	$ 1.26
Beta	0.701
Diluted Shares Outstanding	97.78
Cost of Debt
Tax Rate	13.62
After-tax Cost of Debt	3.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.907
Total Debt	123.46
Total Equity	123.21
Total Capital	246.67
Debt Weighting	50.05
Equity Weighting	49.95
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	200.59	235.91	226.12	209.32	190.40	188.97	187.55	186.14	184.74	183.35
Operating Cash Flow	13.52	10.71	10.98	6.24	13.34	9.87	9.80	9.72	9.65	9.58
Capital Expenditure	-1.85	-0.37	-1.76	-1.80	-1.16	-1.26	-1.25	-1.24	-1.23	-1.22
Free Cash Flow	11.67	10.34	9.22	4.44	12.18	8.62	8.55	8.49	8.42	8.36
WACC
PV LFCF						8.17	7.68	7.23	6.80	6.40
SUM PV LFCF										36.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.49
Free cash flow (t + 1)	8.53
Terminal Value	244.33
Present Value of Terminal Value	187.04

Intrinsic Value

Enterprise Value	223.32
Net Debt	67.13
Equity Value	156.19
Shares Outstanding	97.78
Equity Value Per Share	1.60