Discounted Cash Flow (DCF) Analysis Levered

Ritchie Bros. Auctioneers Incorpora... (RBA.TO)

$87.03

+0.92 (+1.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 96.69 | 87.03 | undervalue

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 610.521,170.031,318.641,377.261,416.971,812.572,318.632,965.963,794.034,853.28
Revenue (%)
Operating Cash Flow 146.27144.28332.79257.87317.59372.17476.08608.99779.01996.51
Operating Cash Flow (%)
Capital Expenditure -39.40-43.01-41-43.14-43.49-70.47-90.15-115.31-147.51-188.69
Capital Expenditure (%)
Free Cash Flow 106.87101.27291.79214.74274.10301.70385.93493.68631.50807.81

Weighted Average Cost Of Capital

Share price $ 87.03
Beta 1.012
Diluted Shares Outstanding 111.41
Cost of Debt
Tax Rate 26.00
After-tax Cost of Debt 1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.742
Total Debt 1,867.45
Total Equity 9,695.74
Total Capital 11,563.19
Debt Weighting 16.15
Equity Weighting 83.85
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 610.521,170.031,318.641,377.261,416.971,812.572,318.632,965.963,794.034,853.28
Operating Cash Flow 146.27144.28332.79257.87317.59372.17476.08608.99779.01996.51
Capital Expenditure -39.40-43.01-41-43.14-43.49-70.47-90.15-115.31-147.51-188.69
Free Cash Flow 106.87101.27291.79214.74274.10301.70385.93493.68631.50807.81
WACC
PV LFCF 280.47333.52396.61471.64560.86
SUM PV LFCF 2,043.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.57
Free cash flow (t + 1) 823.97
Terminal Value 14,793.01
Present Value of Terminal Value 10,270.71

Intrinsic Value

Enterprise Value 12,313.82
Net Debt 1,541.34
Equity Value 10,772.48
Shares Outstanding 111.41
Equity Value Per Share 96.69