Discounted Cash Flow (DCF) Analysis Levered

TeraGo Inc. (TGO.TO)

$3.45

-0.12 (-3.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.24 | 3.45 | 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	55.39	54.30	48.44	45.45	43.30	40.74	38.33	36.06	33.93	31.92
Revenue (%)
Operating Cash Flow	10.36	10.76	15.38	13.33	9.32	9.87	9.29	8.74	8.22	7.73
Operating Cash Flow (%)
Capital Expenditure	-9.24	-13.03	-6.73	-7.62	-7.38	-7.20	-6.78	-6.38	-6	-5.64
Capital Expenditure (%)
Free Cash Flow	1.12	-2.28	8.65	5.72	1.94	2.67	2.51	2.36	2.22	2.09

Weighted Average Cost Of Capital

Share price	$ 3.45
Beta	0.320
Diluted Shares Outstanding	107.49
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	10.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.041
Total Debt	35.91
Total Equity	370.83
Total Capital	406.74
Debt Weighting	8.83
Equity Weighting	91.17
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	55.39	54.30	48.44	45.45	43.30	40.74	38.33	36.06	33.93	31.92
Operating Cash Flow	10.36	10.76	15.38	13.33	9.32	9.87	9.29	8.74	8.22	7.73
Capital Expenditure	-9.24	-13.03	-6.73	-7.62	-7.38	-7.20	-6.78	-6.38	-6	-5.64
Free Cash Flow	1.12	-2.28	8.65	5.72	1.94	2.67	2.51	2.36	2.22	2.09
WACC
PV LFCF						2.53	2.25	2.01	1.79	1.60
SUM PV LFCF										10.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.55
Free cash flow (t + 1)	2.13
Terminal Value	60.06
Present Value of Terminal Value	45.84

Intrinsic Value

Enterprise Value	56.02
Net Debt	30.43
Equity Value	25.58
Shares Outstanding	107.49
Equity Value Per Share	0.24