Discounted Cash Flow (DCF) Analysis Levered

Pizza Pizza Royalty Corp. (PZA.TO)

$12.64

+0.03 (+0.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.63 | 12.64 | 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 35.6135.4135.9531.7931.9231.1030.3129.5428.7828.05
Revenue (%)
Operating Cash Flow 28.0127.6628.3025.1924.7524.4023.7823.1722.5822
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----24.4023.7823.1722.5822

Weighted Average Cost Of Capital

Share price $ 12.64
Beta 1.144
Diluted Shares Outstanding 32.18
Cost of Debt
Tax Rate 20.27
After-tax Cost of Debt 2.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.204
Total Debt 46.94
Total Equity 406.72
Total Capital 453.66
Debt Weighting 10.35
Equity Weighting 89.65
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 35.6135.4135.9531.7931.9231.1030.3129.5428.7828.05
Operating Cash Flow 28.0127.6628.3025.1924.7524.4023.7823.1722.5822
Capital Expenditure ----------
Free Cash Flow -----24.4023.7823.1722.5822
WACC
PV LFCF 22.4920.2018.1516.3014.64
SUM PV LFCF 91.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.49
Free cash flow (t + 1) 22.44
Terminal Value 345.82
Present Value of Terminal Value 230.09

Intrinsic Value

Enterprise Value 321.88
Net Debt 44.28
Equity Value 277.59
Shares Outstanding 32.18
Equity Value Per Share 8.63