Discounted Cash Flow (DCF) Analysis Levered

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

$8.33

+0.03 (+0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 6.83 | 8.33 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 384.82409.14432.08650.42735.74874.751,040.031,236.541,470.171,747.95
Revenue (%)
Operating Cash Flow 20.9642.1134.4594.87113.1993.92111.66132.76157.85187.67
Operating Cash Flow (%)
Capital Expenditure -25.49-32.04-31.30-49.94-58.69-65.35-77.70-92.38-109.83-130.59
Capital Expenditure (%)
Free Cash Flow -4.5210.073.1444.9354.5028.5733.9640.3848.0157.08

Weighted Average Cost Of Capital

Share price $ 8.33
Beta 1.490
Diluted Shares Outstanding 83.36
Cost of Debt
Tax Rate 23.21
After-tax Cost of Debt 8.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.631
Total Debt 25.55
Total Equity 694.41
Total Capital 719.97
Debt Weighting 3.55
Equity Weighting 96.45
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 384.82409.14432.08650.42735.74874.751,040.031,236.541,470.171,747.95
Operating Cash Flow 20.9642.1134.4594.87113.1993.92111.66132.76157.85187.67
Capital Expenditure -25.49-32.04-31.30-49.94-58.69-65.35-77.70-92.38-109.83-130.59
Free Cash Flow -4.5210.073.1444.9354.5028.5733.9640.3848.0157.08
WACC
PV LFCF 25.6227.3129.1231.0433.09
SUM PV LFCF 146.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.52
Free cash flow (t + 1) 58.23
Terminal Value 611.61
Present Value of Terminal Value 354.58

Intrinsic Value

Enterprise Value 500.75
Net Debt -68.88
Equity Value 569.63
Shares Outstanding 83.36
Equity Value Per Share 6.83