Discounted Cash Flow (DCF) Analysis Levered

Savaria Corporation (SIS.TO)

$16.74

+0.34 (+2.07%)

All numbers are in Millions, Currency in USD

Stock DCF: 78.57 | 16.74 | 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	286.03	374.34	354.50	660.98	789.09	1,048.33	1,392.73	1,850.28	2,458.14	3,265.70
Revenue (%)
Operating Cash Flow	24.72	30.31	49.31	57.28	90.74	106.53	141.53	188.03	249.80	331.87
Operating Cash Flow (%)
Capital Expenditure	-11.36	-9.60	-6.98	-15.71	-20.52	-28.27	-37.56	-49.89	-66.29	-88.06
Capital Expenditure (%)
Free Cash Flow	13.36	20.70	42.33	41.56	70.22	78.27	103.98	138.14	183.52	243.81

Weighted Average Cost Of Capital

Share price	$ 16.74
Beta	0.742
Diluted Shares Outstanding	62.24
Cost of Debt
Tax Rate	25.62
After-tax Cost of Debt	2.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.193
Total Debt	410.07
Total Equity	1,041.89
Total Capital	1,451.96
Debt Weighting	28.24
Equity Weighting	71.76
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	286.03	374.34	354.50	660.98	789.09	1,048.33	1,392.73	1,850.28	2,458.14	3,265.70
Operating Cash Flow	24.72	30.31	49.31	57.28	90.74	106.53	141.53	188.03	249.80	331.87
Capital Expenditure	-11.36	-9.60	-6.98	-15.71	-20.52	-28.27	-37.56	-49.89	-66.29	-88.06
Free Cash Flow	13.36	20.70	42.33	41.56	70.22	78.27	103.98	138.14	183.52	243.81
WACC
PV LFCF						73.84	92.54	115.98	145.36	182.19
SUM PV LFCF										609.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.00
Free cash flow (t + 1)	248.68
Terminal Value	6,217.12
Present Value of Terminal Value	4,645.79

Intrinsic Value

Enterprise Value	5,255.70
Net Debt	365.35
Equity Value	4,890.36
Shares Outstanding	62.24
Equity Value Per Share	78.57