Discounted Cash Flow (DCF) Analysis Levered

Nabors Industries Ltd. (NBR)

$167.58

+3.98 (+2.43%)
All numbers are in Millions, Currency in USD
Stock DCF: -282.82 | 167.58 | overvalue

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 2,564.283,057.623,043.382,134.042,017.551,9341,853.901,777.131,703.531,632.99
Revenue (%)
Operating Cash Flow 62.76325.77684.56349.76428.78283.28271.55260.30249.52239.19
Operating Cash Flow (%)
Capital Expenditure -574.47-458.94-427.74-195.52-237.64-280.07-268.47-257.36-246.70-236.48
Capital Expenditure (%)
Free Cash Flow -511.71-133.16256.82154.24191.143.213.072.952.832.71

Weighted Average Cost Of Capital

Share price $ 167.58
Beta 2.858
Diluted Shares Outstanding 7.91
Cost of Debt
Tax Rate -16.63
After-tax Cost of Debt 5.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.235
Total Debt 3,268.22
Total Equity 1,325.06
Total Capital 4,593.27
Debt Weighting 71.15
Equity Weighting 28.85
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 2,564.283,057.623,043.382,134.042,017.551,9341,853.901,777.131,703.531,632.99
Operating Cash Flow 62.76325.77684.56349.76428.78283.28271.55260.30249.52239.19
Capital Expenditure -574.47-458.94-427.74-195.52-237.64-280.07-268.47-257.36-246.70-236.48
Free Cash Flow -511.71-133.16256.82154.24191.143.213.072.952.832.71
WACC
PV LFCF 2.962.622.312.041.81
SUM PV LFCF 11.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.42
Free cash flow (t + 1) 2.76
Terminal Value 43.03
Present Value of Terminal Value 28.72

Intrinsic Value

Enterprise Value 40.46
Net Debt 2,276.75
Equity Value -2,236.29
Shares Outstanding 7.91
Equity Value Per Share -282.82