Discounted Cash Flow (DCF) Analysis Levered

Oceaneering International, Inc. (OII)

$21.68

+0.50 (+2.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.85 | 21.68 | 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	1,921.51	1,909.48	2,048.12	1,827.89	1,869.28	1,860.61	1,851.99	1,843.40	1,834.86	1,826.36
Revenue (%)
Operating Cash Flow	136.48	36.57	157.57	136.65	225.31	134.86	134.23	133.61	132.99	132.38
Operating Cash Flow (%)
Capital Expenditure	-93.68	-109.47	-147.68	-60.69	-50.20	-88.66	-88.24	-87.84	-87.43	-87.02
Capital Expenditure (%)
Free Cash Flow	42.80	-72.90	9.89	75.96	175.11	46.20	45.99	45.77	45.56	45.35

Weighted Average Cost Of Capital

Share price	$ 21.68
Beta	2.862
Diluted Shares Outstanding	99.80
Cost of Debt
Tax Rate	-763.67
After-tax Cost of Debt	5.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	17.150
Total Debt	702.07
Total Equity	2,163.64
Total Capital	2,865.70
Debt Weighting	24.50
Equity Weighting	75.50
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	1,921.51	1,909.48	2,048.12	1,827.89	1,869.28	1,860.61	1,851.99	1,843.40	1,834.86	1,826.36
Operating Cash Flow	136.48	36.57	157.57	136.65	225.31	134.86	134.23	133.61	132.99	132.38
Capital Expenditure	-93.68	-109.47	-147.68	-60.69	-50.20	-88.66	-88.24	-87.84	-87.43	-87.02
Free Cash Flow	42.80	-72.90	9.89	75.96	175.11	46.20	45.99	45.77	45.56	45.35
WACC
PV LFCF						40.42	35.20	30.65	26.69	23.25
SUM PV LFCF										156.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	14.30
Free cash flow (t + 1)	46.26
Terminal Value	376.09
Present Value of Terminal Value	192.78

Intrinsic Value

Enterprise Value	348.99
Net Debt	163.95
Equity Value	185.04
Shares Outstanding	99.80
Equity Value Per Share	1.85