Discounted Cash Flow (DCF) Analysis Levered

RPC, Inc. (RES)

$7.7

+0.06 (+0.79%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.61 | 7.7 | 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	1,721.01	1,222.41	598.30	864.93	1,601.76	1,800.89	2,024.77	2,276.49	2,559.50	2,877.69
Revenue (%)
Operating Cash Flow	389.01	209.14	77.96	47.72	0.20	209.88	235.98	265.31	298.29	335.38
Operating Cash Flow (%)
Capital Expenditure	-242.61	-250.63	-65.07	-67.64	-0.14	-191.99	-215.86	-242.69	-272.87	-306.79
Capital Expenditure (%)
Free Cash Flow	146.40	-41.49	12.89	-19.93	0.06	17.89	20.12	22.62	25.43	28.59

Weighted Average Cost Of Capital

Share price	$ 7.7
Beta	1.819
Diluted Shares Outstanding	215.64
Cost of Debt
Tax Rate	24.61
After-tax Cost of Debt	1.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.966
Total Debt	30.25
Total Equity	1,660.43
Total Capital	1,690.67
Debt Weighting	1.79
Equity Weighting	98.21
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	1,721.01	1,222.41	598.30	864.93	1,601.76	1,800.89	2,024.77	2,276.49	2,559.50	2,877.69
Operating Cash Flow	389.01	209.14	77.96	47.72	0.20	209.88	235.98	265.31	298.29	335.38
Capital Expenditure	-242.61	-250.63	-65.07	-67.64	-0.14	-191.99	-215.86	-242.69	-272.87	-306.79
Free Cash Flow	146.40	-41.49	12.89	-19.93	0.06	17.89	20.12	22.62	25.43	28.59
WACC
PV LFCF						9.17	9.23	9.28	9.33	9.39
SUM PV LFCF										80.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.78
Free cash flow (t + 1)	29.16
Terminal Value	298.19
Present Value of Terminal Value	170.87

Intrinsic Value

Enterprise Value	251.84
Net Debt	-96.18
Equity Value	348.02
Shares Outstanding	215.64
Equity Value Per Share	1.61