Discounted Cash Flow (DCF) Analysis Levered

Tucows Inc. (TCX)

$39.9

+0.18 (+0.45%)
All numbers are in Millions, Currency in USD
Stock DCF: -35.55 | 39.9 | 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 329.42346.01337.15311.20304.34298.69293.14287.70282.36277.11
Revenue (%)
Operating Cash Flow 31.9037.2140.3836.0829.6432.1131.5130.9330.3529.79
Operating Cash Flow (%)
Capital Expenditure -15.88-28.48-47.64-44.51-73.95-39.30-38.57-37.85-37.15-36.46
Capital Expenditure (%)
Free Cash Flow 16.028.72-7.25-8.43-44.31-7.19-7.06-6.93-6.80-6.67

Weighted Average Cost Of Capital

Share price $ 39.9
Beta 0.737
Diluted Shares Outstanding 10.82
Cost of Debt
Tax Rate 53.73
After-tax Cost of Debt 1.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.355
Total Debt 205.75
Total Equity 431.62
Total Capital 637.37
Debt Weighting 32.28
Equity Weighting 67.72
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 329.42346.01337.15311.20304.34298.69293.14287.70282.36277.11
Operating Cash Flow 31.9037.2140.3836.0829.6432.1131.5130.9330.3529.79
Capital Expenditure -15.88-28.48-47.64-44.51-73.95-39.30-38.57-37.85-37.15-36.46
Free Cash Flow 16.028.72-7.25-8.43-44.31-7.19-7.06-6.93-6.80-6.67
WACC
PV LFCF -6.83-6.36-5.93-5.52-5.15
SUM PV LFCF -29.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.32
Free cash flow (t + 1) -6.80
Terminal Value -204.94
Present Value of Terminal Value -158.15

Intrinsic Value

Enterprise Value -187.94
Net Debt 196.65
Equity Value -384.58
Shares Outstanding 10.82
Equity Value Per Share -35.55