Discounted Cash Flow (DCF) Analysis Levered

Methanex Corporation (MEOH)

$40.16

+2.47 (+6.55%)
All numbers are in Millions, Currency in USD
Stock DCF: 198.56 | 40.16 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,060.644,482.703,283.512,649.964,414.565,154.066,017.447,025.458,202.329,576.33
Revenue (%)
Operating Cash Flow 787.74980.21515.43461.08993.931,063.961,242.191,450.281,693.221,976.86
Operating Cash Flow (%)
Capital Expenditure -103.17-244.48-323.86-341.82-245.44-382.91-447.05-521.94-609.37-711.45
Capital Expenditure (%)
Free Cash Flow 684.57735.73191.57119.27748.49681.05795.14928.341,083.851,265.41

Weighted Average Cost Of Capital

Share price $ 40.16
Beta 2.075
Diluted Shares Outstanding 76.24
Cost of Debt
Tax Rate 27.61
After-tax Cost of Debt 3.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.921
Total Debt 2,875.29
Total Equity 3,061.95
Total Capital 5,937.24
Debt Weighting 48.43
Equity Weighting 51.57
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,060.644,482.703,283.512,649.964,414.565,154.066,017.447,025.458,202.329,576.33
Operating Cash Flow 787.74980.21515.43461.08993.931,063.961,242.191,450.281,693.221,976.86
Capital Expenditure -103.17-244.48-323.86-341.82-245.44-382.91-447.05-521.94-609.37-711.45
Free Cash Flow 684.57735.73191.57119.27748.49681.05795.14928.341,083.851,265.41
WACC
PV LFCF 628.16676.43728.41784.39844.66
SUM PV LFCF 3,662.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.42
Free cash flow (t + 1) 1,290.72
Terminal Value 20,104.62
Present Value of Terminal Value 13,419.89

Intrinsic Value

Enterprise Value 17,081.95
Net Debt 1,943.22
Equity Value 15,138.73
Shares Outstanding 76.24
Equity Value Per Share 198.56