Discounted Cash Flow (DCF) Analysis Levered

MTY Food Group Inc. (MTY.TO)

$67.7

-0.13 (-0.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 160.17 | 67.7 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	276.08	353.30	550.94	511.12	551.90	668.72	810.25	981.74	1,189.53	1,441.30
Revenue (%)
Operating Cash Flow	89.49	97.63	112.95	133.65	139.30	176.46	213.81	259.06	313.89	380.33
Operating Cash Flow (%)
Capital Expenditure	-3.27	-7.83	-7.30	-5.62	-6.76	-9.43	-11.43	-13.84	-16.77	-20.33
Capital Expenditure (%)
Free Cash Flow	86.22	89.80	105.65	128.03	132.54	167.03	202.38	245.22	297.12	360

Weighted Average Cost Of Capital

Share price	$ 67.7
Beta	1.821
Diluted Shares Outstanding	24.75
Cost of Debt
Tax Rate	23.59
After-tax Cost of Debt	1.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.150
Total Debt	834.28
Total Equity	1,675.25
Total Capital	2,509.52
Debt Weighting	33.24
Equity Weighting	66.76
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	276.08	353.30	550.94	511.12	551.90	668.72	810.25	981.74	1,189.53	1,441.30
Operating Cash Flow	89.49	97.63	112.95	133.65	139.30	176.46	213.81	259.06	313.89	380.33
Capital Expenditure	-3.27	-7.83	-7.30	-5.62	-6.76	-9.43	-11.43	-13.84	-16.77	-20.33
Free Cash Flow	86.22	89.80	105.65	128.03	132.54	167.03	202.38	245.22	297.12	360
WACC
PV LFCF						153.96	171.94	192.03	214.47	239.53
SUM PV LFCF										971.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.49
Free cash flow (t + 1)	367.20
Terminal Value	5,657.96
Present Value of Terminal Value	3,764.54

Intrinsic Value

Enterprise Value	4,736.47
Net Debt	773.04
Equity Value	3,963.42
Shares Outstanding	24.75
Equity Value Per Share	160.17