Discounted Cash Flow (DCF) Analysis Levered

RPC, Inc. (RES)

$7.4

+0.13 (+1.79%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.44 | 7.4 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,222.41598.30864.931,601.761,617.471,939.672,326.052,789.403,345.044,011.37
Revenue (%)
Operating Cash Flow 209.1477.9647.72201.29303.24259.80311.55373.61448.03537.28
Operating Cash Flow (%)
Capital Expenditure -250.63-65.07-67.64-139.55-193.74-232.33-278.61-334.11-400.66-480.47
Capital Expenditure (%)
Free Cash Flow -41.4912.89-19.9361.73109.5027.4732.9439.5047.3756.81

Weighted Average Cost Of Capital

Share price $ 7.4
Beta 1.624
Diluted Shares Outstanding 216.47
Cost of Debt
Tax Rate 23.86
After-tax Cost of Debt 3.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.937
Total Debt 30.25
Total Equity 1,601.89
Total Capital 1,632.14
Debt Weighting 1.85
Equity Weighting 98.15
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,222.41598.30864.931,601.761,617.471,939.672,326.052,789.403,345.044,011.37
Operating Cash Flow 209.1477.9647.72201.29303.24259.80311.55373.61448.03537.28
Capital Expenditure -250.63-65.07-67.64-139.55-193.74-232.33-278.61-334.11-400.66-480.47
Free Cash Flow -41.4912.89-19.9361.73109.5027.4732.9439.5047.3756.81
WACC
PV LFCF 24.5726.3628.2830.3432.55
SUM PV LFCF 142.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.78
Free cash flow (t + 1) 57.09
Terminal Value 506.15
Present Value of Terminal Value 290.04

Intrinsic Value

Enterprise Value 432.16
Net Debt -96.18
Equity Value 528.34
Shares Outstanding 216.47
Equity Value Per Share 2.44