Discounted Cash Flow (DCF) Analysis Levered

MDC Partners Inc. (MDCA)

$5.42

-0.19 (-3.39%)
All numbers are in Millions, Currency in USD
Stock DCF: -8.18 | 5.42 | overvalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 1,385.791,513.781,476.201,415.801,199.011,161.091,124.371,088.821,054.381,021.04
Revenue (%)
Operating Cash Flow 5.42115.2917.2886.5432.5641.8140.4939.2137.9736.77
Operating Cash Flow (%)
Capital Expenditure -29.43-32.96-20.26-18.60-24.31-20.93-20.27-19.63-19.01-18.41
Capital Expenditure (%)
Free Cash Flow -24.0182.33-2.9867.948.2520.8820.2219.5818.9618.36

Weighted Average Cost Of Capital

Share price $ 5.42
Beta 0.787
Diluted Shares Outstanding 72.86
Cost of Debt
Tax Rate -159.01
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.475
Total Debt 1,131.63
Total Equity 394.91
Total Capital 1,526.55
Debt Weighting 74.13
Equity Weighting 25.87
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 1,385.791,513.781,476.201,415.801,199.011,161.091,124.371,088.821,054.381,021.04
Operating Cash Flow 5.42115.2917.2886.5432.5641.8140.4939.2137.9736.77
Capital Expenditure -29.43-32.96-20.26-18.60-24.31-20.93-20.27-19.63-19.01-18.41
Free Cash Flow -24.0182.33-2.9867.948.2520.8820.2219.5818.9618.36
WACC
PV LFCF 19.7618.1216.6115.2213.95
SUM PV LFCF 83.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.64
Free cash flow (t + 1) 18.73
Terminal Value 514.48
Present Value of Terminal Value 391.05

Intrinsic Value

Enterprise Value 474.71
Net Debt 1,070.88
Equity Value -596.17
Shares Outstanding 72.86
Equity Value Per Share -8.18