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	115.67	137.61	149.77	159.93	180.57	202.02	226.01	252.85	282.87	316.46
Revenue (%)
Operating Cash Flow	32.56	40.47	35.45	35.61	52.68	53.61	59.97	67.09	75.06	83.97
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	31.97	37.81	34.14	34.73	51.91	51.87	58.03	64.92	72.63	81.26

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	115.67	137.61	149.77	159.93	180.57	202.02	226.01	252.85	282.87	316.46
Operating Cash Flow	32.56	40.47	35.45	35.61	52.68	53.61	59.97	67.09	75.06	83.97
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	31.97	37.81	34.14	34.73	51.91	51.87	58.03	64.92	72.63	81.26
WACC
PV LFCF						36.55	38.57	40.70	42.95	45.33
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