Discounted Cash Flow (DCF) Analysis Levered
Precision Drilling Corporation (PDS)
$72.53
+0.90 (+1.26%)
All numbers are in Millions, Currency in USD
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 |