Discounted Cash Flow (DCF) Analysis Levered

RPC, Inc. (RES)

$9.61

+0.16 (+1.69%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.51 | 9.61 | 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	1,595.23	1,721.01	1,222.41	598.30	864.93	805.30	749.77	698.08	649.95	605.14
Revenue (%)
Operating Cash Flow	133.70	389.01	209.14	77.96	47.72	107.33	99.93	93.04	86.63	80.65
Operating Cash Flow (%)
Capital Expenditure	-117.51	-242.61	-250.63	-65.07	-67.64	-97.70	-90.97	-84.69	-78.85	-73.42
Capital Expenditure (%)
Free Cash Flow	16.19	146.40	-41.49	12.89	-19.93	9.63	8.97	8.35	7.77	7.24

Weighted Average Cost Of Capital

Share price	$ 9.61
Beta	1.789
Diluted Shares Outstanding	215.64
Cost of Debt
Tax Rate	56.12
After-tax Cost of Debt	1.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.997
Total Debt	46.30
Total Equity	2,072.30
Total Capital	2,118.60
Debt Weighting	2.19
Equity Weighting	97.81
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	1,595.23	1,721.01	1,222.41	598.30	864.93	805.30	749.77	698.08	649.95	605.14
Operating Cash Flow	133.70	389.01	209.14	77.96	47.72	107.33	99.93	93.04	86.63	80.65
Capital Expenditure	-117.51	-242.61	-250.63	-65.07	-67.64	-97.70	-90.97	-84.69	-78.85	-73.42
Free Cash Flow	16.19	146.40	-41.49	12.89	-19.93	9.63	8.97	8.35	7.77	7.24
WACC
PV LFCF						8.62	7.18	5.98	4.98	4.15
SUM PV LFCF										30.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.77
Free cash flow (t + 1)	7.38
Terminal Value	75.55
Present Value of Terminal Value	43.31

Intrinsic Value

Enterprise Value	74.21
Net Debt	-36.13
Equity Value	110.34
Shares Outstanding	215.64
Equity Value Per Share	0.51