Discounted Cash Flow (DCF) Analysis Levered

Rayonier Advanced Materials Inc. (RYAM)

$3.54

-0.17 (-4.58%)
All numbers are in Millions, Currency in USD
Stock DCF: -77.75 | 3.54 | 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 961.332,134.411,775.391,738.901,4081,704.112,062.482,496.233,021.193,656.56
Revenue (%)
Operating Cash Flow 129.77246.9441.90124.47232174.04210.64254.94308.55373.44
Operating Cash Flow (%)
Capital Expenditure -75.04-132.21-102.81-77.16-95-105.57-127.77-154.64-187.16-226.53
Capital Expenditure (%)
Free Cash Flow 54.73114.74-60.9047.3113768.4782.87100.29121.39146.91

Weighted Average Cost Of Capital

Share price $ 3.54
Beta 3.195
Diluted Shares Outstanding 63.43
Cost of Debt
Tax Rate 179.52
After-tax Cost of Debt -6.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 18.972
Total Debt 929
Total Equity 224.54
Total Capital 1,153.54
Debt Weighting 80.53
Equity Weighting 19.47
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 961.332,134.411,775.391,738.901,4081,704.112,062.482,496.233,021.193,656.56
Operating Cash Flow 129.77246.9441.90124.47232174.04210.64254.94308.55373.44
Capital Expenditure -75.04-132.21-102.81-77.16-95-105.57-127.77-154.64-187.16-226.53
Free Cash Flow 54.73114.74-60.9047.3113768.4782.87100.29121.39146.91
WACC
PV LFCF 69.4085.13104.44128.12157.17
SUM PV LFCF 544.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -1.34
Free cash flow (t + 1) 149.85
Terminal Value -4,486.59
Present Value of Terminal Value -4,799.66

Intrinsic Value

Enterprise Value -4,255.42
Net Debt 676
Equity Value -4,931.42
Shares Outstanding 63.43
Equity Value Per Share -77.75