Discounted Cash Flow (DCF) Analysis Levered

Safe Bulkers, Inc. (SB)

$4.47

+0.11 (+2.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 12.16 | 4.47 | undervalue

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 193.19197.76198.16329.03349.72415.20492.95585.25694.83824.94
Revenue (%)
Operating Cash Flow 85.4558.2863.38217.20218194.34230.73273.93325.23386.12
Operating Cash Flow (%)
Capital Expenditure -45.93-39.24-50.44-109.23-183.28-128.45-152.50-181.05-214.95-255.20
Capital Expenditure (%)
Free Cash Flow 39.5219.0412.93107.9734.7265.9078.2392.88110.28130.92

Weighted Average Cost Of Capital

Share price $ 4.47
Beta 0.992
Diluted Shares Outstanding 120.65
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.019
Total Debt 414.36
Total Equity 539.32
Total Capital 953.68
Debt Weighting 43.45
Equity Weighting 56.55
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 193.19197.76198.16329.03349.72415.20492.95585.25694.83824.94
Operating Cash Flow 85.4558.2863.38217.20218194.34230.73273.93325.23386.12
Capital Expenditure -45.93-39.24-50.44-109.23-183.28-128.45-152.50-181.05-214.95-255.20
Free Cash Flow 39.5219.0412.93107.9734.7265.9078.2392.88110.28130.92
WACC
PV LFCF 61.6068.3675.8684.1993.44
SUM PV LFCF 383.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.98
Free cash flow (t + 1) 131.58
Terminal Value 2,030.55
Present Value of Terminal Value 1,449.11

Intrinsic Value

Enterprise Value 1,832.55
Net Debt 365.18
Equity Value 1,467.38
Shares Outstanding 120.65
Equity Value Per Share 12.16