Discounted Cash Flow (DCF) Analysis Levered

Sandstorm Gold Ltd. (SSL.TO)

$7.12

-0.20 (-2.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.02 | 7.12 | overvalue

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 68.2873.1589.4393.02114.86131.20149.85171.17195.51223.32
Revenue (%)
Operating Cash Flow 44.7746.5857.3465.6281.1487.78100.27114.53130.82149.42
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 40.360.55-3.9562.14-71.5615.7317.9720.5323.4426.78

Weighted Average Cost Of Capital

Share price $ 7.12
Beta 0.934
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 8.009
Total Debt 2.58
Total Equity 1,408.50
Total Capital 1,411.08
Debt Weighting 0.18
Equity Weighting 99.82
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 68.2873.1589.4393.02114.86131.20149.85171.17195.51223.32
Operating Cash Flow 44.7746.5857.3465.6281.1487.78100.27114.53130.82149.42
Capital Expenditure -4.41-46.03-61.29-3.48-152.70-72.05-82.30-94-107.37-122.64
Free Cash Flow 40.360.55-3.9562.14-71.5615.7317.9720.5323.4426.78
WACC
PV LFCF 14.5515.3816.2517.1718.15
SUM PV LFCF 81.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.09
Free cash flow (t + 1) 27.31
Terminal Value 448.51
Present Value of Terminal Value 303.98

Intrinsic Value

Enterprise Value 385.49
Net Debt -13.59
Equity Value 399.08
Shares Outstanding 197.82
Equity Value Per Share 2.02