Discounted Cash Flow (DCF) Analysis Levered
Sandstorm Gold Ltd. (SSL.TO)
$7.81
-0.20 (-2.50%)
All numbers are in Millions, Currency in USD
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 | 68.28 | 73.15 | 89.43 | 93.02 | 114.86 | 131.20 | 149.85 | 171.17 | 195.51 | 223.32 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 44.77 | 46.58 | 57.34 | 65.62 | 81.14 | 87.78 | 100.27 | 114.53 | 130.82 | 149.42 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -4.41 | -46.03 | -61.29 | -3.48 | -152.70 | -72.05 | -82.30 | -94 | -107.37 | -122.64 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 40.36 | 0.55 | -3.95 | 62.14 | -71.56 | 15.73 | 17.97 | 20.53 | 23.44 | 26.78 |
Weighted Average Cost Of Capital
Share price | $ 7.81 |
---|---|
Beta | 0.907 |
Diluted Shares Outstanding | 197.82 |
Cost of Debt | |
Tax Rate | 38.42 |
After-tax Cost of Debt | 50.98% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.800 |
Total Debt | 2.58 |
Total Equity | 1,545 |
Total Capital | 1,547.58 |
Debt Weighting | 0.17 |
Equity Weighting | 99.83 |
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 | 68.28 | 73.15 | 89.43 | 93.02 | 114.86 | 131.20 | 149.85 | 171.17 | 195.51 | 223.32 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 44.77 | 46.58 | 57.34 | 65.62 | 81.14 | 87.78 | 100.27 | 114.53 | 130.82 | 149.42 |
Capital Expenditure | -4.41 | -46.03 | -61.29 | -3.48 | -152.70 | -72.05 | -82.30 | -94 | -107.37 | -122.64 |
Free Cash Flow | 40.36 | 0.55 | -3.95 | 62.14 | -71.56 | 15.73 | 17.97 | 20.53 | 23.44 | 26.78 |
WACC | ||||||||||
PV LFCF | 12.53 | 13.27 | 14.05 | 14.88 | 15.76 | |||||
SUM PV LFCF | 82.03 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.87 |
Free cash flow (t + 1) | 27.31 |
Terminal Value | 465.32 |
Present Value of Terminal Value | 318.60 |
Intrinsic Value
Enterprise Value | 400.63 |
---|---|
Net Debt | -13.59 |
Equity Value | 414.22 |
Shares Outstanding | 197.82 |
Equity Value Per Share | 2.09 |