Discounted Cash Flow (DCF) Analysis Levered

Morguard Corporation (MRC.TO)

$106.05

-1.46 (-1.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 371.31 | 106.05 | undervalue

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	1,164.18	1,175.68	1,028.45	1,021.91	1,120.03	1,112.83	1,105.68	1,098.57	1,091.52	1,084.50
Revenue (%)
Operating Cash Flow	291.40	282.41	211.94	265.44	252.85	263.10	261.41	259.73	258.06	256.40
Operating Cash Flow (%)
Capital Expenditure	-5.92	-12.66	-2.14	-0.68	-1.66	-4.47	-4.44	-4.41	-4.38	-4.36
Capital Expenditure (%)
Free Cash Flow	285.48	269.76	209.80	264.77	251.19	258.63	256.96	255.31	253.67	252.04

Weighted Average Cost Of Capital

Share price	$ 106.05
Beta	1.134
Diluted Shares Outstanding	11.08
Cost of Debt
Tax Rate	9.37
After-tax Cost of Debt	3.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.853
Total Debt	5,800.21
Total Equity	1,174.93
Total Capital	6,975.14
Debt Weighting	83.16
Equity Weighting	16.84
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	1,164.18	1,175.68	1,028.45	1,021.91	1,120.03	1,112.83	1,105.68	1,098.57	1,091.52	1,084.50
Operating Cash Flow	291.40	282.41	211.94	265.44	252.85	263.10	261.41	259.73	258.06	256.40
Capital Expenditure	-5.92	-12.66	-2.14	-0.68	-1.66	-4.47	-4.44	-4.41	-4.38	-4.36
Free Cash Flow	285.48	269.76	209.80	264.77	251.19	258.63	256.96	255.31	253.67	252.04
WACC
PV LFCF						247.75	235.81	224.44	213.62	203.32
SUM PV LFCF										1,124.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.39
Free cash flow (t + 1)	257.08
Terminal Value	10,756.65
Present Value of Terminal Value	8,677.25

Intrinsic Value

Enterprise Value	9,802.19
Net Debt	5,688.40
Equity Value	4,113.78
Shares Outstanding	11.08
Equity Value Per Share	371.31