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 1,321.221,541.191,541.32935.75986.85944.48903.94865.13827.99792.45
Revenue (%)
Operating Cash Flow 116.55293.33288.16226.12139.22160.23153.35146.77140.47134.44
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 18.55167.19127.47164.5363.2884.0980.4877.0373.7270.56

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 1,321.221,541.191,541.32935.75986.85944.48903.94865.13827.99792.45
Operating Cash Flow 116.55293.33288.16226.12139.22160.23153.35146.77140.47134.44
Capital Expenditure -98-126.14-160.69-61.59-75.94-76.14-72.87-69.74-66.75-63.88
Free Cash Flow 18.55167.19127.47164.5363.2884.0980.4877.0373.7270.56
WACC
PV LFCF 74.7563.5954.1046.0239.15
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