Discounted Cash Flow (DCF) Analysis Levered

RB Global, Inc. (RBA.TO)

$85.38

-1.02 (-1.18%)

All numbers are in Millions, Currency in USD

Stock DCF: 65.69 | 85.38 | 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	1,170.03	1,318.64	1,377.26	1,416.97	1,733.81	1,917.55	2,120.77	2,345.52	2,594.09	2,869
Revenue (%)
Operating Cash Flow	144.28	332.79	257.87	317.59	463.06	404.27	447.11	494.50	546.90	604.86
Operating Cash Flow (%)
Capital Expenditure	-43.01	-41	-43.14	-43.49	-71.94	-65.72	-72.68	-80.38	-88.90	-98.33
Capital Expenditure (%)
Free Cash Flow	101.27	291.79	214.74	274.10	391.12	338.55	374.43	414.11	458	506.53

Weighted Average Cost Of Capital

Share price	$ 85.38
Beta	0.839
Diluted Shares Outstanding	111.89
Cost of Debt
Tax Rate	21.26
After-tax Cost of Debt	7.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.069
Total Debt	610.62
Total Equity	9,552.83
Total Capital	10,163.44
Debt Weighting	6.01
Equity Weighting	93.99
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	1,170.03	1,318.64	1,377.26	1,416.97	1,733.81	1,917.55	2,120.77	2,345.52	2,594.09	2,869
Operating Cash Flow	144.28	332.79	257.87	317.59	463.06	404.27	447.11	494.50	546.90	604.86
Capital Expenditure	-43.01	-41	-43.14	-43.49	-71.94	-65.72	-72.68	-80.38	-88.90	-98.33
Free Cash Flow	101.27	291.79	214.74	274.10	391.12	338.55	374.43	414.11	458	506.53
WACC
PV LFCF						268.53	274.91	281.45	288.14	294.98
SUM PV LFCF										1,643.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.03
Free cash flow (t + 1)	516.67
Terminal Value	8,568.25
Present Value of Terminal Value	5,823.31

Intrinsic Value

Enterprise Value	7,466.53
Net Debt	116.29
Equity Value	7,350.23
Shares Outstanding	111.89
Equity Value Per Share	65.69