Discounted Cash Flow (DCF) Analysis Levered

PrairieSky Royalty Ltd. (PSK.TO)

$25.13

+0.20 (+0.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 13.17 | 25.13 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 273.80268.40171.40308643.30885.261,218.221,676.422,306.953,174.64
Revenue (%)
Operating Cash Flow 235.20209.70152.30252565.50748.241,029.671,416.951,949.892,683.29
Operating Cash Flow (%)
Capital Expenditure -58.60-10-9.40-985.60-30.60-629.19-865.84-1,191.49-1,639.64-2,256.34
Capital Expenditure (%)
Free Cash Flow 176.60199.70142.90-733.60534.90119.06163.83225.46310.25426.95

Weighted Average Cost Of Capital

Share price $ 25.13
Beta 1.792
Diluted Shares Outstanding 223.80
Cost of Debt
Tax Rate 23.64
After-tax Cost of Debt 6.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.614
Total Debt 219.20
Total Equity 5,624.09
Total Capital 5,843.29
Debt Weighting 3.75
Equity Weighting 96.25
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 273.80268.40171.40308643.30885.261,218.221,676.422,306.953,174.64
Operating Cash Flow 235.20209.70152.30252565.50748.241,029.671,416.951,949.892,683.29
Capital Expenditure -58.60-10-9.40-985.60-30.60-629.19-865.84-1,191.49-1,639.64-2,256.34
Free Cash Flow 176.60199.70142.90-733.60534.90119.06163.83225.46310.25426.95
WACC
PV LFCF 105.94129.73158.85194.52238.19
SUM PV LFCF 827.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.38
Free cash flow (t + 1) 435.49
Terminal Value 4,195.43
Present Value of Terminal Value 2,340.62

Intrinsic Value

Enterprise Value 3,167.85
Net Debt 220.10
Equity Value 2,947.75
Shares Outstanding 223.80
Equity Value Per Share 13.17