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: -8.15 | 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	1,385.79	1,513.78	1,476.20	1,415.80	1,199.01	1,161.09	1,124.37	1,088.82	1,054.38	1,021.04
Revenue (%)
Operating Cash Flow	5.42	115.29	17.28	86.54	32.56	41.81	40.49	39.21	37.97	36.77
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	-24.01	82.33	-2.98	67.94	8.25	20.88	20.22	19.58	18.96	18.36

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	7.407
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	1,385.79	1,513.78	1,476.20	1,415.80	1,199.01	1,161.09	1,124.37	1,088.82	1,054.38	1,021.04
Operating Cash Flow	5.42	115.29	17.28	86.54	32.56	41.81	40.49	39.21	37.97	36.77
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	-24.01	82.33	-2.98	67.94	8.25	20.88	20.22	19.58	18.96	18.36
WACC
PV LFCF						19.77	18.12	16.62	15.23	13.97
SUM PV LFCF										83.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.62
Free cash flow (t + 1)	18.73
Terminal Value	517.32
Present Value of Terminal Value	393.58

Intrinsic Value

Enterprise Value	477.29
Net Debt	1,070.88
Equity Value	-593.59
Shares Outstanding	72.86
Equity Value Per Share	-8.15