Discounted Cash Flow (DCF) Analysis Levered

Oceaneering International, Inc. (OII)

$16.94

-0.85 (-4.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.40 | 16.94 | 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 1,909.482,048.121,827.891,869.282,066.082,114.122,163.282,213.582,265.052,317.71
Revenue (%)
Operating Cash Flow 36.57157.57136.65225.31120.88147.94151.38154.90158.50162.19
Operating Cash Flow (%)
Capital Expenditure -109.47-147.68-60.69-50.20-81.04-96.71-98.96-101.26-103.61-106.02
Capital Expenditure (%)
Free Cash Flow -72.909.8975.96175.1139.8451.2352.4253.6454.8956.17

Weighted Average Cost Of Capital

Share price $ 16.94
Beta 2.851
Diluted Shares Outstanding 101.45
Cost of Debt
Tax Rate 67.18
After-tax Cost of Debt 1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.955
Total Debt 852.82
Total Equity 1,718.51
Total Capital 2,571.33
Debt Weighting 33.17
Equity Weighting 66.83
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 1,909.482,048.121,827.891,869.282,066.082,114.122,163.282,213.582,265.052,317.71
Operating Cash Flow 36.57157.57136.65225.31120.88147.94151.38154.90158.50162.19
Capital Expenditure -109.47-147.68-60.69-50.20-81.04-96.71-98.96-101.26-103.61-106.02
Free Cash Flow -72.909.8975.96175.1139.8451.2352.4253.6454.8956.17
WACC
PV LFCF 45.8241.9338.3735.1132.13
SUM PV LFCF 193.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.82
Free cash flow (t + 1) 57.29
Terminal Value 583.40
Present Value of Terminal Value 333.71

Intrinsic Value

Enterprise Value 527.06
Net Debt 284.07
Equity Value 242.99
Shares Outstanding 101.45
Equity Value Per Share 2.40