Discounted Cash Flow (DCF) Analysis Levered

Trican Well Service Ltd. (TCW.TO)

$4.23

+0.07 (+1.68%)
All numbers are in Millions, Currency in USD
Stock DCF: 6.02 | 4.23 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 636.07397.02562.48866.29972.681,143.841,345.121,581.821,860.172,187.50
Revenue (%)
Operating Cash Flow 28.6370.7774.10152.23248.46179.84211.49248.71292.47343.94
Operating Cash Flow (%)
Capital Expenditure -33.23-12.79-53.88-103.62-79.29-87.25-102.60-120.65-141.88-166.85
Capital Expenditure (%)
Free Cash Flow -4.6057.9820.2148.61169.1792.60108.89128.06150.59177.09

Weighted Average Cost Of Capital

Share price $ 4.23
Beta 1.865
Diluted Shares Outstanding 221.45
Cost of Debt
Tax Rate 23.88
After-tax Cost of Debt 10.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.962
Total Debt 18.14
Total Equity 936.74
Total Capital 954.87
Debt Weighting 1.90
Equity Weighting 98.10
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 636.07397.02562.48866.29972.681,143.841,345.121,581.821,860.172,187.50
Operating Cash Flow 28.6370.7774.10152.23248.46179.84211.49248.71292.47343.94
Capital Expenditure -33.23-12.79-53.88-103.62-79.29-87.25-102.60-120.65-141.88-166.85
Free Cash Flow -4.6057.9820.2148.61169.1792.60108.89128.06150.59177.09
WACC
PV LFCF 56.9559.3161.7764.3366.99
SUM PV LFCF 445.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.92
Free cash flow (t + 1) 178.86
Terminal Value 1,500.50
Present Value of Terminal Value 817.30

Intrinsic Value

Enterprise Value 1,262.72
Net Debt -70.61
Equity Value 1,333.33
Shares Outstanding 221.45
Equity Value Per Share 6.02