Discounted Cash Flow (DCF) Analysis Levered

Nabors Industries Ltd. (NBR)

$102.34

-2.94 (-2.79%)

All numbers are in Millions, Currency in USD

Stock DCF: -53.20 | 102.34 | 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	2,668.76	2,645.23	2,621.91	2,598.79	2,575.88	2,553.17
Revenue (%)
Operating Cash Flow	325.77	684.56	349.76	428.78	501.09	473.84	469.67	465.53	461.42	457.35
Operating Cash Flow (%)
Capital Expenditure	-458.94	-427.74	-195.52	-237.64	-373.44	-338.58	-335.60	-332.64	-329.70	-326.80
Capital Expenditure (%)
Free Cash Flow	-133.16	256.82	154.24	191.14	127.64	135.26	134.07	132.89	131.72	130.56

Weighted Average Cost Of Capital

Share price	$ 102.34
Beta	2.774
Diluted Shares Outstanding	8.90
Cost of Debt
Tax Rate	-42.57
After-tax Cost of Debt	6.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity	16.839
Total Debt	2,544.32
Total Equity	910.62
Total Capital	3,454.95
Debt Weighting	73.64
Equity Weighting	26.36
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	2,668.76	2,645.23	2,621.91	2,598.79	2,575.88	2,553.17
Operating Cash Flow	325.77	684.56	349.76	428.78	501.09	473.84	469.67	465.53	461.42	457.35
Capital Expenditure	-458.94	-427.74	-195.52	-237.64	-373.44	-338.58	-335.60	-332.64	-329.70	-326.80
Free Cash Flow	-133.16	256.82	154.24	191.14	127.64	135.26	134.07	132.89	131.72	130.56
WACC
PV LFCF						123.43	111.63	100.97	91.32	82.59
SUM PV LFCF										509.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.59
Free cash flow (t + 1)	133.17
Terminal Value	1,754.51
Present Value of Terminal Value	1,109.94

Intrinsic Value

Enterprise Value	1,619.88
Net Debt	2,093.30
Equity Value	-473.42
Shares Outstanding	8.90
Equity Value Per Share	-53.20