Discounted Cash Flow (DCF) Analysis Levered

Pollard Banknote Limited (PBL.TO)

$18.22

-0.89 (-4.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.40 | 18.22 | undervalue

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 285.65331.87397.84414.13459.01517.53583.50657.88741.74836.30
Revenue (%)
Operating Cash Flow 28.3639.6629.2959.6556.5457.9265.3173.6383.0293.60
Operating Cash Flow (%)
Capital Expenditure -9.19-22.24-25.79-18.94-34.83-29.56-33.33-37.58-42.37-47.77
Capital Expenditure (%)
Free Cash Flow 19.1617.433.5040.7221.7128.3631.9836.0540.6545.83

Weighted Average Cost Of Capital

Share price $ 18.22
Beta 0.673
Diluted Shares Outstanding 25.64
Cost of Debt
Tax Rate 27.34
After-tax Cost of Debt 2.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.871
Total Debt 131.70
Total Equity 467.24
Total Capital 598.94
Debt Weighting 21.99
Equity Weighting 78.01
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 285.65331.87397.84414.13459.01517.53583.50657.88741.74836.30
Operating Cash Flow 28.3639.6629.2959.6556.5457.9265.3173.6383.0293.60
Capital Expenditure -9.19-22.24-25.79-18.94-34.83-29.56-33.33-37.58-42.37-47.77
Free Cash Flow 19.1617.433.5040.7221.7128.3631.9836.0540.6545.83
WACC
PV LFCF 26.7728.4830.3032.2534.31
SUM PV LFCF 152.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.96
Free cash flow (t + 1) 46.75
Terminal Value 1,180.47
Present Value of Terminal Value 883.78

Intrinsic Value

Enterprise Value 1,035.89
Net Debt 128.18
Equity Value 907.71
Shares Outstanding 25.64
Equity Value Per Share 35.40