Discounted Cash Flow (DCF) Analysis Levered

TransGlobe Energy Corporation (TGL.TO)

$3.65

+0.23 (+6.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.09 | 3.65 | undervalue

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 148.46299.14140.10188.77169.01199.68235.92278.74329.33389.10
Revenue (%)
Operating Cash Flow 59.4569.1944.8431.7144.9655.3465.3977.2591.28107.84
Operating Cash Flow (%)
Capital Expenditure -37.21-40.12-36-7.06-26.73-33.44-39.51-46.68-55.15-65.16
Capital Expenditure (%)
Free Cash Flow 22.2429.078.8324.6518.2421.9125.8830.5836.1342.69

Weighted Average Cost Of Capital

Share price $ 3.65
Beta 2.334
Diluted Shares Outstanding 73.34
Cost of Debt
Tax Rate 35.72
After-tax Cost of Debt 19.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.979
Total Debt 3.84
Total Equity 267.70
Total Capital 271.54
Debt Weighting 1.41
Equity Weighting 98.59
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 148.46299.14140.10188.77169.01199.68235.92278.74329.33389.10
Operating Cash Flow 59.4569.1944.8431.7144.9655.3465.3977.2591.28107.84
Capital Expenditure -37.21-40.12-36-7.06-26.73-33.44-39.51-46.68-55.15-65.16
Free Cash Flow 22.2429.078.8324.6518.2421.9125.8830.5836.1342.69
WACC
PV LFCF 19.0419.5620.0920.6321.19
SUM PV LFCF 100.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 15.04
Free cash flow (t + 1) 43.54
Terminal Value 333.90
Present Value of Terminal Value 165.72

Intrinsic Value

Enterprise Value 266.22
Net Debt -34.09
Equity Value 300.30
Shares Outstanding 73.34
Equity Value Per Share 4.09