Discounted Cash Flow (DCF) Analysis Levered

Mainstreet Equity Corp. (MEQ.TO)

$125.82

-3.43 (-2.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 45.81 | 125.82 | 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 115.67137.61149.77159.93180.57202.02226.01252.85282.87316.46
Revenue (%)
Operating Cash Flow 32.5640.4735.4535.6152.6853.6159.9767.0975.0683.97
Operating Cash Flow (%)
Capital Expenditure -0.59-2.66-1.31-0.88-0.77-1.74-1.94-2.17-2.43-2.72
Capital Expenditure (%)
Free Cash Flow 31.9737.8134.1434.7351.9151.8758.0364.9272.6381.26

Weighted Average Cost Of Capital

Share price $ 125.82
Beta 1.528
Diluted Shares Outstanding 9.35
Cost of Debt
Tax Rate 15.81
After-tax Cost of Debt 2.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.711
Total Debt 1,433.45
Total Equity 1,175.83
Total Capital 2,609.28
Debt Weighting 54.94
Equity Weighting 45.06
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 115.67137.61149.77159.93180.57202.02226.01252.85282.87316.46
Operating Cash Flow 32.5640.4735.4535.6152.6853.6159.9767.0975.0683.97
Capital Expenditure -0.59-2.66-1.31-0.88-0.77-1.74-1.94-2.17-2.43-2.72
Free Cash Flow 31.9737.8134.1434.7351.9151.8758.0364.9272.6381.26
WACC
PV LFCF 36.5538.5740.7042.9545.33
SUM PV LFCF 273.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.01
Free cash flow (t + 1) 82.88
Terminal Value 2,066.84
Present Value of Terminal Value 1,543.74

Intrinsic Value

Enterprise Value 1,816.99
Net Debt 1,388.89
Equity Value 428.10
Shares Outstanding 9.35
Equity Value Per Share 45.81