Discounted Cash Flow (DCF) Analysis Levered

Morguard North American Residential... (MRG-UN.TO)

$16.79

+0.05 (+0.30%)

All numbers are in Millions, Currency in USD

Stock DCF: 48.63 | 16.79 | 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	241.37	245.60	248.68	245.57	278.49	289.05	300.01	311.38	323.18	335.43
Revenue (%)
Operating Cash Flow	59.95	62.48	50.13	63.70	75.17	71.32	74.02	76.83	79.74	82.76
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	71.32	74.02	76.83	79.74	82.76

Weighted Average Cost Of Capital

Share price	$ 16.79
Beta	1.025
Diluted Shares Outstanding	39.11
Cost of Debt
Tax Rate	29.24
After-tax Cost of Debt	2.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.529
Total Debt	1,483.54
Total Equity	656.69
Total Capital	2,140.22
Debt Weighting	69.32
Equity Weighting	30.68
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	241.37	245.60	248.68	245.57	278.49	289.05	300.01	311.38	323.18	335.43
Operating Cash Flow	59.95	62.48	50.13	63.70	75.17	71.32	74.02	76.83	79.74	82.76
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	71.32	74.02	76.83	79.74	82.76
WACC
PV LFCF						68.40	68.10	67.79	67.48	67.18
SUM PV LFCF										338.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.26
Free cash flow (t + 1)	84.42
Terminal Value	3,735.28
Present Value of Terminal Value	3,032.04

Intrinsic Value

Enterprise Value	3,370.99
Net Debt	1,468.90
Equity Value	1,902.10
Shares Outstanding	39.11
Equity Value Per Share	48.63