Discounted Cash Flow (DCF) Analysis Levered

PFB Corporation (PFB.TO)

$24.1

+0.04 (+0.17%)

All numbers are in Millions, Currency in USD

Stock DCF: 43.06 | 24.1 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	101.53	105.56	128.34	133.23	134.80	145.09	156.16	168.08	180.91	194.72
Revenue (%)
Operating Cash Flow	7.58	7.80	10.44	17.54	27.11	16.33	17.57	18.91	20.36	21.91
Operating Cash Flow (%)
Capital Expenditure	-3.07	-20.41	-1.83	-2.20	-1.59	-7.72	-8.31	-8.95	-9.63	-10.37
Capital Expenditure (%)
Free Cash Flow	4.52	-12.61	8.60	15.34	25.52	8.60	9.26	9.97	10.73	11.54

Weighted Average Cost Of Capital

Share price	$ 24.1
Beta	0.485
Diluted Shares Outstanding	6.92
Cost of Debt
Tax Rate	24.68
After-tax Cost of Debt	5.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.775
Total Debt	16.75
Total Equity	166.87
Total Capital	183.62
Debt Weighting	9.12
Equity Weighting	90.88
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	101.53	105.56	128.34	133.23	134.80	145.09	156.16	168.08	180.91	194.72
Operating Cash Flow	7.58	7.80	10.44	17.54	27.11	16.33	17.57	18.91	20.36	21.91
Capital Expenditure	-3.07	-20.41	-1.83	-2.20	-1.59	-7.72	-8.31	-8.95	-9.63	-10.37
Free Cash Flow	4.52	-12.61	8.60	15.34	25.52	8.60	9.26	9.97	10.73	11.54
WACC
PV LFCF						8.14	8.29	8.44	8.59	8.75
SUM PV LFCF										42.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.71
Free cash flow (t + 1)	11.78
Terminal Value	317.40
Present Value of Terminal Value	240.45

Intrinsic Value

Enterprise Value	282.65
Net Debt	-15.52
Equity Value	298.17
Shares Outstanding	6.92
Equity Value Per Share	43.06