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	384.82	409.14	432.08	650.42	735.74	874.75	1,040.03	1,236.54	1,470.17	1,747.95
Revenue (%)
Operating Cash Flow	20.96	42.11	34.45	94.87	113.19	93.92	111.66	132.76	157.85	187.67
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	-4.52	10.07	3.14	44.93	54.50	28.57	33.96	40.38	48.01	57.08

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	384.82	409.14	432.08	650.42	735.74	874.75	1,040.03	1,236.54	1,470.17	1,747.95
Operating Cash Flow	20.96	42.11	34.45	94.87	113.19	93.92	111.66	132.76	157.85	187.67
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	-4.52	10.07	3.14	44.93	54.50	28.57	33.96	40.38	48.01	57.08
WACC
PV LFCF						25.62	27.31	29.12	31.04	33.09
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