Discounted Cash Flow (DCF) Analysis Levered

Transcontinental Inc. (TCL-A.TO)

$14.2

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 77.73 | 14.2 | 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	2,623.50	3,038.80	2,574	2,643.40	2,956.10	3,067.40	3,182.89	3,302.72	3,427.07	3,556.10
Revenue (%)
Operating Cash Flow	312.50	431.60	427	315.30	220.80	380.97	395.32	410.20	425.65	441.67
Operating Cash Flow (%)
Capital Expenditure	-80	-125.60	-97.50	-138.30	-142.40	-128.95	-133.81	-138.84	-144.07	-149.50
Capital Expenditure (%)
Free Cash Flow	232.50	306	329.50	177	78.40	252.02	261.51	271.36	281.58	292.18

Weighted Average Cost Of Capital

Share price	$ 14.2
Beta	0.915
Diluted Shares Outstanding	86.80
Cost of Debt
Tax Rate	20.36
After-tax Cost of Debt	2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.012
Total Debt	1,150.30
Total Equity	1,232.56
Total Capital	2,382.86
Debt Weighting	48.27
Equity Weighting	51.73
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	2,623.50	3,038.80	2,574	2,643.40	2,956.10	3,067.40	3,182.89	3,302.72	3,427.07	3,556.10
Operating Cash Flow	312.50	431.60	427	315.30	220.80	380.97	395.32	410.20	425.65	441.67
Capital Expenditure	-80	-125.60	-97.50	-138.30	-142.40	-128.95	-133.81	-138.84	-144.07	-149.50
Free Cash Flow	232.50	306	329.50	177	78.40	252.02	261.51	271.36	281.58	292.18
WACC
PV LFCF						239.07	235.31	231.62	227.98	224.40
SUM PV LFCF										1,158.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.42
Free cash flow (t + 1)	298.02
Terminal Value	8,714.06
Present Value of Terminal Value	6,692.77

Intrinsic Value

Enterprise Value	7,851.15
Net Debt	1,104.60
Equity Value	6,746.55
Shares Outstanding	86.80
Equity Value Per Share	77.73