Discounted Cash Flow (DCF) Analysis Levered

Mainstreet Equity Corp. (MEQ.TO)

$135.03

+0.10 (+0.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.90 | 135.03 | 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 $ 135.03
Beta 1.531
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 11.035
Total Debt 1,433.45
Total Equity 1,261.90
Total Capital 2,695.36
Debt Weighting 53.18
Equity Weighting 46.82
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 48.7951.3554.0356.8659.84
SUM PV LFCF 270.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.31
Free cash flow (t + 1) 82.88
Terminal Value 1,922.98
Present Value of Terminal Value 1,416.13

Intrinsic Value

Enterprise Value 1,687
Net Debt 1,388.89
Equity Value 298.11
Shares Outstanding 9.35
Equity Value Per Share 31.90