Discounted Cash Flow (DCF) Analysis Levered

Trican Well Service Ltd. (TCW.TO)

$2.82

+0.13 (+4.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.85 | 2.82 | 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 929.91900.59636.07397.02562.48522.50485.36450.86418.81389.04
Revenue (%)
Operating Cash Flow 133.58100.9428.6370.7774.1063.8259.2855.0751.1547.52
Operating Cash Flow (%)
Capital Expenditure -30.31-78.79-33.23-12.79-53.88-31.38-29.15-27.08-25.16-23.37
Capital Expenditure (%)
Free Cash Flow 103.2722.15-4.6057.9820.2132.4330.1327.992624.15

Weighted Average Cost Of Capital

Share price $ 2.82
Beta 2.197
Diluted Shares Outstanding 257.79
Cost of Debt
Tax Rate -43.76
After-tax Cost of Debt 19.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.332
Total Debt 10.32
Total Equity 726.96
Total Capital 737.28
Debt Weighting 1.40
Equity Weighting 98.60
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 929.91900.59636.07397.02562.48522.50485.36450.86418.81389.04
Operating Cash Flow 133.58100.9428.6370.7774.1063.8259.2855.0751.1547.52
Capital Expenditure -30.31-78.79-33.23-12.79-53.88-31.38-29.15-27.08-25.16-23.37
Free Cash Flow 103.2722.15-4.6057.9820.2132.4330.1327.992624.15
WACC
PV LFCF 28.3523.0218.6915.1812.33
SUM PV LFCF 97.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.40
Free cash flow (t + 1) 24.63
Terminal Value 198.66
Present Value of Terminal Value 101.38

Intrinsic Value

Enterprise Value 198.96
Net Debt -19.19
Equity Value 218.15
Shares Outstanding 257.79
Equity Value Per Share 0.85