Discounted Cash Flow (DCF) Analysis Levered

Oceaneering International, Inc. (OII)

$16.19

-0.24 (-1.46%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.53 | 16.19 | 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	1,909.48	2,048.12	1,827.89	1,869.28	2,066.08	2,114.12	2,163.28	2,213.58	2,265.05	2,317.71
Revenue (%)
Operating Cash Flow	36.57	157.57	136.65	225.31	120.88	147.94	151.38	154.90	158.50	162.19
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	-72.90	9.89	75.96	175.11	39.84	51.23	52.42	53.64	54.89	56.17

Weighted Average Cost Of Capital

Share price	$ 16.19
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	16.835
Total Debt	852.82
Total Equity	1,642.43
Total Capital	2,495.24
Debt Weighting	34.18
Equity Weighting	65.82
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	1,909.48	2,048.12	1,827.89	1,869.28	2,066.08	2,114.12	2,163.28	2,213.58	2,265.05	2,317.71
Operating Cash Flow	36.57	157.57	136.65	225.31	120.88	147.94	151.38	154.90	158.50	162.19
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	-72.90	9.89	75.96	175.11	39.84	51.23	52.42	53.64	54.89	56.17
WACC
PV LFCF						45.92	42.11	38.61	35.41	32.47
SUM PV LFCF										194.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.58
Free cash flow (t + 1)	57.29
Terminal Value	598.02
Present Value of Terminal Value	345.76

Intrinsic Value

Enterprise Value	540.29
Net Debt	284.07
Equity Value	256.22
Shares Outstanding	101.45
Equity Value Per Share	2.53