Discounted Cash Flow (DCF) Analysis Levered

Safe Bulkers, Inc. (SB)

$3.17

-0.05 (-1.55%)

All numbers are in Millions, Currency in USD

Stock DCF: 10.99 | 3.17 | 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	193.19	197.76	198.16	329.03	349.72	415.20	492.95	585.25	694.83	824.94
Revenue (%)
Operating Cash Flow	85.45	58.28	63.38	217.21	0.22	142.63	169.34	201.05	238.69	283.39
Operating Cash Flow (%)
Capital Expenditure	-45.93	-39.24	-50.44	-109.23	-89.42	-106.16	-126.04	-149.64	-177.65	-210.92
Capital Expenditure (%)
Free Cash Flow	39.52	19.04	12.93	107.98	-89.20	36.47	43.30	51.41	61.04	72.47

Weighted Average Cost Of Capital

Share price	$ 3.17
Beta	0.884
Diluted Shares Outstanding	113.72
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	4.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.811
Total Debt	414.36
Total Equity	360.48
Total Capital	774.84
Debt Weighting	53.48
Equity Weighting	46.52
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	193.19	197.76	198.16	329.03	349.72	415.20	492.95	585.25	694.83	824.94
Operating Cash Flow	85.45	58.28	63.38	217.21	0.22	142.63	169.34	201.05	238.69	283.39
Capital Expenditure	-45.93	-39.24	-50.44	-109.23	-89.42	-106.16	-126.04	-149.64	-177.65	-210.92
Free Cash Flow	39.52	19.04	12.93	107.98	-89.20	36.47	43.30	51.41	61.04	72.47
WACC
PV LFCF						34.46	38.65	43.35	48.62	54.54
SUM PV LFCF										219.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.85
Free cash flow (t + 1)	73.92
Terminal Value	1,919.88
Present Value of Terminal Value	1,444.84

Intrinsic Value

Enterprise Value	1,664.46
Net Debt	414.36
Equity Value	1,250.09
Shares Outstanding	113.72
Equity Value Per Share	10.99