Discounted Cash Flow (DCF) Analysis Levered

STEP Energy Services Ltd. (STEP.TO)

$2.9

-0.01 (-0.34%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.55 | 2.9 | 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 781.76668.30368.95536.31989.021,163.251,368.181,609.211,892.702,226.14
Revenue (%)
Operating Cash Flow 110.9069.9446.8058.85122.60141.23166.11195.37229.79270.28
Operating Cash Flow (%)
Capital Expenditure -115.45-49.06-17.83-37.24-82.98-98.35-115.68-136.06-160.03-188.22
Capital Expenditure (%)
Free Cash Flow -4.5520.8828.9821.6039.6242.8850.4359.3269.7682.06

Weighted Average Cost Of Capital

Share price $ 2.9
Beta 2.587
Diluted Shares Outstanding 68.01
Cost of Debt
Tax Rate 21.44
After-tax Cost of Debt 5.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 15.954
Total Debt 162.98
Total Equity 197.22
Total Capital 360.20
Debt Weighting 45.25
Equity Weighting 54.75
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 781.76668.30368.95536.31989.021,163.251,368.181,609.211,892.702,226.14
Operating Cash Flow 110.9069.9446.8058.85122.60141.23166.11195.37229.79270.28
Capital Expenditure -115.45-49.06-17.83-37.24-82.98-98.35-115.68-136.06-160.03-188.22
Free Cash Flow -4.5520.8828.9821.6039.6242.8850.4359.3269.7682.06
WACC
PV LFCF 38.5240.7043.0145.4548.02
SUM PV LFCF 215.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.31
Free cash flow (t + 1) 83.70
Terminal Value 898.99
Present Value of Terminal Value 526.12

Intrinsic Value

Enterprise Value 741.82
Net Debt 160.19
Equity Value 581.63
Shares Outstanding 68.01
Equity Value Per Share 8.55