Discounted Cash Flow (DCF) Analysis Levered

Resolute Forest Products Inc. (RFP.TO)

$28.14

-0.36 (-1.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 18.85 | 28.14 | 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 3,5133,7562,9232,8003,6643,768.323,875.613,985.954,099.434,216.15
Revenue (%)
Operating Cash Flow 15843585334648366.29376.72387.44398.47409.82
Operating Cash Flow (%)
Capital Expenditure -164-155-113-78-112-139.45-143.42-147.51-151.71-156.03
Capital Expenditure (%)
Free Cash Flow -6280-28256536226.84233.29239.94246.77253.79

Weighted Average Cost Of Capital

Share price $ 28.14
Beta 2.831
Diluted Shares Outstanding 80.30
Cost of Debt
Tax Rate 39.09
After-tax Cost of Debt 3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.055
Total Debt 361
Total Equity 2,259.64
Total Capital 2,620.64
Debt Weighting 13.78
Equity Weighting 86.22
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 3,5133,7562,9232,8003,6643,768.323,875.613,985.954,099.434,216.15
Operating Cash Flow 15843585334648366.29376.72387.44398.47409.82
Capital Expenditure -164-155-113-78-112-139.45-143.42-147.51-151.71-156.03
Free Cash Flow -6280-28256536226.84233.29239.94246.77253.79
WACC
PV LFCF 196.92175.82156.98140.16125.14
SUM PV LFCF 795.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 15.19
Free cash flow (t + 1) 258.87
Terminal Value 1,962.61
Present Value of Terminal Value 967.74

Intrinsic Value

Enterprise Value 1,762.78
Net Debt 249
Equity Value 1,513.78
Shares Outstanding 80.30
Equity Value Per Share 18.85