Discounted Cash Flow (DCF) Analysis Levered

Nabors Industries Ltd. (NBR)

$79.55

-0.31 (-0.39%)

All numbers are in Millions, Currency in USD

Stock DCF: -42.81 | 79.55 | 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	3,057.62	3,043.38	2,134.04	2,017.55	2,653.77	2,625.44	2,597.42	2,569.69	2,542.26	2,515.13
Revenue (%)
Operating Cash Flow	325.77	684.56	349.76	428.78	501.09	470.86	465.83	460.86	455.94	451.07
Operating Cash Flow (%)
Capital Expenditure	-458.94	-427.74	-195.52	-237.64	-373.45	-336.46	-332.87	-329.32	-325.80	-322.33
Capital Expenditure (%)
Free Cash Flow	-133.16	256.82	154.24	191.14	127.64	134.39	132.96	131.54	130.14	128.75

Weighted Average Cost Of Capital

Share price	$ 79.55
Beta	2.627
Diluted Shares Outstanding	8.90
Cost of Debt
Tax Rate	-25.05
After-tax Cost of Debt	7.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity	16.654
Total Debt	2,537.54
Total Equity	707.84
Total Capital	3,245.38
Debt Weighting	78.19
Equity Weighting	21.81
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	3,057.62	3,043.38	2,134.04	2,017.55	2,653.77	2,625.44	2,597.42	2,569.69	2,542.26	2,515.13
Operating Cash Flow	325.77	684.56	349.76	428.78	501.09	470.86	465.83	460.86	455.94	451.07
Capital Expenditure	-458.94	-427.74	-195.52	-237.64	-373.45	-336.46	-332.87	-329.32	-325.80	-322.33
Free Cash Flow	-133.16	256.82	154.24	191.14	127.64	134.39	132.96	131.54	130.14	128.75
WACC
PV LFCF						112.89	102.36	92.81	84.15	76.30
SUM PV LFCF										511.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.11
Free cash flow (t + 1)	131.32
Terminal Value	1,847
Present Value of Terminal Value	1,194.38

Intrinsic Value

Enterprise Value	1,705.58
Net Debt	2,086.51
Equity Value	-380.93
Shares Outstanding	8.90
Equity Value Per Share	-42.81