Discounted Cash Flow (DCF) Analysis Levered

Precision Drilling Corporation (PDS)

$72.53

+0.90 (+1.26%)

All numbers are in Millions, Currency in USD

Stock DCF: -35.09 | 72.53 | 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	1,321.22	1,541.19	1,541.32	935.75	986.85	944.48	903.94	865.13	827.99	792.45
Revenue (%)
Operating Cash Flow	116.55	293.33	288.16	226.12	139.22	160.23	153.35	146.77	140.47	134.44
Operating Cash Flow (%)
Capital Expenditure	-98	-126.14	-160.69	-61.59	-75.94	-76.14	-72.87	-69.74	-66.75	-63.88
Capital Expenditure (%)
Free Cash Flow	18.55	167.19	127.47	164.53	63.28	84.09	80.48	77.03	73.72	70.56

Weighted Average Cost Of Capital

Share price	$ 72.53
Beta	3.129
Diluted Shares Outstanding	13.31
Cost of Debt
Tax Rate	2.95
After-tax Cost of Debt	7.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	18.407
Total Debt	1,165.78
Total Equity	965.74
Total Capital	2,131.51
Debt Weighting	54.69
Equity Weighting	45.31
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	1,321.22	1,541.19	1,541.32	935.75	986.85	944.48	903.94	865.13	827.99	792.45
Operating Cash Flow	116.55	293.33	288.16	226.12	139.22	160.23	153.35	146.77	140.47	134.44
Capital Expenditure	-98	-126.14	-160.69	-61.59	-75.94	-76.14	-72.87	-69.74	-66.75	-63.88
Free Cash Flow	18.55	167.19	127.47	164.53	63.28	84.09	80.48	77.03	73.72	70.56
WACC
PV LFCF						74.75	63.59	54.10	46.02	39.15
SUM PV LFCF										277.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.50
Free cash flow (t + 1)	71.97
Terminal Value	685.39
Present Value of Terminal Value	380.34

Intrinsic Value

Enterprise Value	657.96
Net Debt	1,125.19
Equity Value	-467.23
Shares Outstanding	13.31
Equity Value Per Share	-35.09