Discounted Cash Flow (DCF) Analysis Levered
Nine Energy Service, Inc. (NINE)
$3.17
+0.17 (+5.67%)
All numbers are in Millions, Currency in USD
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 | 827.17 | 832.94 | 310.85 | 349.42 | 593.38 | 623.41 | 654.96 | 688.11 | 722.93 | 759.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 89.58 | 101.30 | -4.90 | -40.42 | 16.67 | 15.78 | 16.58 | 17.42 | 18.30 | 19.23 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -46.65 | -64.96 | -9.42 | -15.41 | -28.55 | -32.03 | -33.65 | -35.36 | -37.14 | -39.02 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 42.93 | 36.35 | -14.32 | -55.83 | -11.88 | -16.25 | -17.07 | -17.93 | -18.84 | -19.80 |
Weighted Average Cost Of Capital
| Share price | $ 3.17 |
|---|---|
| Beta | 3.332 |
| Diluted Shares Outstanding | 32.25 |
| Cost of Debt | |
| Tax Rate | 3.65 |
| After-tax Cost of Debt | 8.29% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 19.331 |
| Total Debt | 377.80 |
| Total Equity | 102.24 |
| Total Capital | 480.04 |
| Debt Weighting | 78.70 |
| Equity Weighting | 21.30 |
| 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 | 827.17 | 832.94 | 310.85 | 349.42 | 593.38 | 623.41 | 654.96 | 688.11 | 722.93 | 759.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 89.58 | 101.30 | -4.90 | -40.42 | 16.67 | 15.78 | 16.58 | 17.42 | 18.30 | 19.23 |
| Capital Expenditure | -46.65 | -64.96 | -9.42 | -15.41 | -28.55 | -32.03 | -33.65 | -35.36 | -37.14 | -39.02 |
| Free Cash Flow | 42.93 | 36.35 | -14.32 | -55.83 | -11.88 | -16.25 | -17.07 | -17.93 | -18.84 | -19.80 |
| WACC | ||||||||||
| PV LFCF | -8.86 | -8.41 | -7.99 | -7.58 | -7.20 | |||||
| SUM PV LFCF | -66.39 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.64 |
| Free cash flow (t + 1) | -20.19 |
| Terminal Value | -233.70 |
| Present Value of Terminal Value | -140.96 |
Intrinsic Value
| Enterprise Value | -207.35 |
|---|---|
| Net Debt | 360.36 |
| Equity Value | -567.71 |
| Shares Outstanding | 32.25 |
| Equity Value Per Share | -17.60 |