Discounted Cash Flow (DCF) Analysis Levered

Shaw Communications Inc. (SJR)

$29.62

-0.18 (-0.60%)

All numbers are in Millions, Currency in USD

Stock DCF: 27.17 | 29.62 | overvalue

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	5,239	5,340	5,407	5,509	5,448	5,501.96	5,556.45	5,611.48	5,667.06	5,723.19
Revenue (%)
Operating Cash Flow	1,351	1,568	1,920	1,923	1,831	1,751.55	1,768.90	1,786.42	1,804.11	1,821.98
Operating Cash Flow (%)
Capital Expenditure	-1,332	-1,298	-1,151	-1,017	-1,096	-1,206	-1,217.94	-1,230.01	-1,242.19	-1,254.49
Capital Expenditure (%)
Free Cash Flow	19	270	769	906	735	545.55	550.96	556.41	561.92	567.49

Weighted Average Cost Of Capital

Share price	$ 29.62
Beta	0.369
Diluted Shares Outstanding	505
Cost of Debt
Tax Rate	25.17
After-tax Cost of Debt	3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.273
Total Debt	5,883
Total Equity	14,958.10
Total Capital	20,841.10
Debt Weighting	28.23
Equity Weighting	71.77
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	5,239	5,340	5,407	5,509	5,448	5,501.96	5,556.45	5,611.48	5,667.06	5,723.19
Operating Cash Flow	1,351	1,568	1,920	1,923	1,831	1,751.55	1,768.90	1,786.42	1,804.11	1,821.98
Capital Expenditure	-1,332	-1,298	-1,151	-1,017	-1,096	-1,206	-1,217.94	-1,230.01	-1,242.19	-1,254.49
Free Cash Flow	19	270	769	906	735	545.55	550.96	556.41	561.92	567.49
WACC
PV LFCF						520.86	502.22	484.24	466.90	450.19
SUM PV LFCF										2,424.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.74
Free cash flow (t + 1)	578.84
Terminal Value	21,125.55
Present Value of Terminal Value	16,758.89

Intrinsic Value

Enterprise Value	19,183.30
Net Debt	5,462
Equity Value	13,721.30
Shares Outstanding	505
Equity Value Per Share	27.17