Discounted Cash Flow (DCF) Analysis Levered

Major Drilling Group International ... (MDI.TO)

$9.18

-0.02 (-0.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.23 | 9.18 | overvalue

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	342.33	384.82	409.14	432.08	650.42	772.16	916.69	1,088.28	1,291.98	1,533.81
Revenue (%)
Operating Cash Flow	10.17	20.96	42.11	34.45	94.87	63.73	75.66	89.83	106.64	126.60
Operating Cash Flow (%)
Capital Expenditure	-22.51	-25.49	-32.04	-31.30	-49.94	-55.52	-65.92	-78.25	-92.90	-110.29
Capital Expenditure (%)
Free Cash Flow	-12.34	-4.52	10.07	3.14	44.93	8.21	9.75	11.57	13.74	16.31

Weighted Average Cost Of Capital

Share price	$ 9.18
Beta	1.488
Diluted Shares Outstanding	82.73
Cost of Debt
Tax Rate	21.94
After-tax Cost of Debt	2.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.768
Total Debt	55.39
Total Equity	759.43
Total Capital	814.82
Debt Weighting	6.80
Equity Weighting	93.20
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	342.33	384.82	409.14	432.08	650.42	772.16	916.69	1,088.28	1,291.98	1,533.81
Operating Cash Flow	10.17	20.96	42.11	34.45	94.87	63.73	75.66	89.83	106.64	126.60
Capital Expenditure	-22.51	-25.49	-32.04	-31.30	-49.94	-55.52	-65.92	-78.25	-92.90	-110.29
Free Cash Flow	-12.34	-4.52	10.07	3.14	44.93	8.21	9.75	11.57	13.74	16.31
WACC
PV LFCF						7.45	8.03	8.65	9.32	10.04
SUM PV LFCF										43.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.19
Free cash flow (t + 1)	16.64
Terminal Value	203.16
Present Value of Terminal Value	125.06

Intrinsic Value

Enterprise Value	168.56
Net Debt	-15.87
Equity Value	184.43
Shares Outstanding	82.73
Equity Value Per Share	2.23