Discounted Cash Flow (DCF) Analysis Levered
Tucows Inc. (TC.TO)
$41.69
-1.59 (-3.67%)
All numbers are in Millions, Currency in USD
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 | 346.01 | 337.15 | 311.20 | 304.34 | 321.14 | 315.57 | 310.09 | 304.71 | 299.42 | 294.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 37.21 | 40.38 | 36.08 | 29.64 | 19.88 | 31.72 | 31.17 | 30.62 | 30.09 | 29.57 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -28.48 | -47.64 | -44.51 | -73.95 | -137.49 | -65.50 | -64.36 | -63.24 | -62.15 | -61.07 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 8.72 | -7.25 | -8.43 | -44.31 | -117.62 | -33.78 | -33.19 | -32.62 | -32.05 | -31.50 |
Weighted Average Cost Of Capital
| Share price | $ 41.69 |
|---|---|
| Beta | 0.830 |
| Diluted Shares Outstanding | 10.77 |
| Cost of Debt | |
| Tax Rate | 0.78 |
| After-tax Cost of Debt | 5.61% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.609 |
| Total Debt | 256.01 |
| Total Equity | 448.97 |
| Total Capital | 704.98 |
| Debt Weighting | 36.31 |
| Equity Weighting | 63.69 |
| 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 | 346.01 | 337.15 | 311.20 | 304.34 | 321.14 | 315.57 | 310.09 | 304.71 | 299.42 | 294.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 37.21 | 40.38 | 36.08 | 29.64 | 19.88 | 31.72 | 31.17 | 30.62 | 30.09 | 29.57 |
| Capital Expenditure | -28.48 | -47.64 | -44.51 | -73.95 | -137.49 | -65.50 | -64.36 | -63.24 | -62.15 | -61.07 |
| Free Cash Flow | 8.72 | -7.25 | -8.43 | -44.31 | -117.62 | -33.78 | -33.19 | -32.62 | -32.05 | -31.50 |
| WACC | ||||||||||
| PV LFCF | -31.61 | -29.06 | -26.72 | -24.56 | -22.58 | |||||
| SUM PV LFCF | -134.52 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.88 |
| Free cash flow (t + 1) | -32.13 |
| Terminal Value | -658.31 |
| Present Value of Terminal Value | -472.01 |
Intrinsic Value
| Enterprise Value | -606.53 |
|---|---|
| Net Debt | 232.51 |
| Equity Value | -839.05 |
| Shares Outstanding | 10.77 |
| Equity Value Per Share | -77.91 |