Discounted Cash Flow (DCF) Analysis Levered

CIBT Education Group Inc. (MBA.TO)

$0.52

-0.02 (-3.70%)

All numbers are in Millions, Currency in USD

Stock DCF: -12.40 | 0.52 | 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	53.62	74.90	71	62.55	60.87	63.89	67.07	70.41	73.91	77.58
Revenue (%)
Operating Cash Flow	11	19.87	-9.76	7.59	17.11	9.40	9.86	10.35	10.87	11.41
Operating Cash Flow (%)
Capital Expenditure	-35.15	-43.58	-11.99	-33.06	-3.27	-25.41	-26.68	-28	-29.39	-30.85
Capital Expenditure (%)
Free Cash Flow	-24.15	-23.71	-21.75	-25.47	13.83	-16.02	-16.81	-17.65	-18.52	-19.45

Weighted Average Cost Of Capital

Share price	$ 0.52
Beta	1.057
Diluted Shares Outstanding	74.24
Cost of Debt
Tax Rate	17.61
After-tax Cost of Debt	4.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.680
Total Debt	260.43
Total Equity	38.60
Total Capital	299.03
Debt Weighting	87.09
Equity Weighting	12.91
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	53.62	74.90	71	62.55	60.87	63.89	67.07	70.41	73.91	77.58
Operating Cash Flow	11	19.87	-9.76	7.59	17.11	9.40	9.86	10.35	10.87	11.41
Capital Expenditure	-35.15	-43.58	-11.99	-33.06	-3.27	-25.41	-26.68	-28	-29.39	-30.85
Free Cash Flow	-24.15	-23.71	-21.75	-25.47	13.83	-16.02	-16.81	-17.65	-18.52	-19.45
WACC
PV LFCF						-12.21	-12.25	-12.29	-12.33	-12.37
SUM PV LFCF										-77.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.63
Free cash flow (t + 1)	-19.83
Terminal Value	-754.15
Present Value of Terminal Value	-601.42

Intrinsic Value

Enterprise Value	-678.46
Net Debt	242.09
Equity Value	-920.54
Shares Outstanding	74.24
Equity Value Per Share	-12.40