Discounted Cash Flow (DCF) Analysis Levered

Stingray Group Inc. (RAY-B.TO)

$5.94

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 62.84 | 5.94 | undervalue

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	126.95	212.65	306.72	249.47	282.63	357.78	452.92	573.36	725.82	918.83
Revenue (%)
Operating Cash Flow	19.38	34.75	88.14	104.25	83.66	94.27	119.33	151.07	191.24	242.09
Operating Cash Flow (%)
Capital Expenditure	-8.96	-20.56	-14.38	-13.43	-17.05	-23.49	-29.74	-37.65	-47.66	-60.33
Capital Expenditure (%)
Free Cash Flow	10.42	14.19	73.77	90.81	66.61	70.78	89.60	113.42	143.58	181.76

Weighted Average Cost Of Capital

Share price	$ 5.94
Beta	0.900
Diluted Shares Outstanding	71.46
Cost of Debt
Tax Rate	21.31
After-tax Cost of Debt	2.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.742
Total Debt	411.96
Total Equity	424.49
Total Capital	836.46
Debt Weighting	49.25
Equity Weighting	50.75
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	126.95	212.65	306.72	249.47	282.63	357.78	452.92	573.36	725.82	918.83
Operating Cash Flow	19.38	34.75	88.14	104.25	83.66	94.27	119.33	151.07	191.24	242.09
Capital Expenditure	-8.96	-20.56	-14.38	-13.43	-17.05	-23.49	-29.74	-37.65	-47.66	-60.33
Free Cash Flow	10.42	14.19	73.77	90.81	66.61	70.78	89.60	113.42	143.58	181.76
WACC
PV LFCF						67.23	80.85	97.23	116.92	140.60
SUM PV LFCF										502.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.27
Free cash flow (t + 1)	185.40
Terminal Value	5,669.64
Present Value of Terminal Value	4,385.63

Intrinsic Value

Enterprise Value	4,888.45
Net Debt	397.40
Equity Value	4,491.05
Shares Outstanding	71.46
Equity Value Per Share	62.84