Discounted Cash Flow (DCF) Analysis Levered

Sprott Inc. (SII)

$36.01

-0.09 (-0.25%)

All numbers are in Millions, Currency in USD

Stock DCF: 45.83 | 36.01 | undervalue

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	91.01	73.29	75.05	110.45	164.95	197.70	236.97	284.03	340.44	408.05
Revenue (%)
Operating Cash Flow	41.47	70.05	31.90	26.24	51.25	94.30	113.03	135.48	162.38	194.63
Operating Cash Flow (%)
Capital Expenditure	-0.82	-90.69	-2.26	-13.19	-0.69	-55.36	-66.36	-79.54	-95.33	-114.27
Capital Expenditure (%)
Free Cash Flow	40.66	-20.64	29.64	13.05	50.55	38.94	46.67	55.94	67.05	80.37

Weighted Average Cost Of Capital

Share price	$ 36.01
Beta	1.188
Diluted Shares Outstanding	24.39
Cost of Debt
Tax Rate	26.57
After-tax Cost of Debt	3.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.448
Total Debt	29.77
Total Equity	878.20
Total Capital	907.97
Debt Weighting	3.28
Equity Weighting	96.72
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	91.01	73.29	75.05	110.45	164.95	197.70	236.97	284.03	340.44	408.05
Operating Cash Flow	41.47	70.05	31.90	26.24	51.25	94.30	113.03	135.48	162.38	194.63
Capital Expenditure	-0.82	-90.69	-2.26	-13.19	-0.69	-55.36	-66.36	-79.54	-95.33	-114.27
Free Cash Flow	40.66	-20.64	29.64	13.05	50.55	38.94	46.67	55.94	67.05	80.37
WACC
PV LFCF						35.96	39.80	44.05	48.76	53.97
SUM PV LFCF										222.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.29
Free cash flow (t + 1)	81.97
Terminal Value	1,303.24
Present Value of Terminal Value	875.15

Intrinsic Value

Enterprise Value	1,097.69
Net Debt	-20.04
Equity Value	1,117.72
Shares Outstanding	24.39
Equity Value Per Share	45.83