Discounted Cash Flow (DCF) Analysis Levered

Turquoise Hill Resources Ltd. (TRQ.TO)

$40.8

+0.11 (+0.27%)
All numbers are in Millions, Currency in USD
Stock DCF: -380.78 | 40.8 | 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 939.781,180.021,166.011,078.191,971.042,462.103,075.503,841.724,798.835,994.40
Revenue (%)
Operating Cash Flow 118179.97-11.6540.94576.09294.63368.03459.73574.26717.33
Operating Cash Flow (%)
Capital Expenditure -917.54-1,304.35-1,308.07-1,080.52-996.92-2,320.02-2,898.02-3,620.03-4,521.91-5,648.48
Capital Expenditure (%)
Free Cash Flow -799.54-1,124.38-1,319.73-1,039.57-420.82-2,025.39-2,529.99-3,160.30-3,947.65-4,931.15

Weighted Average Cost Of Capital

Share price $ 40.8
Beta 1.675
Diluted Shares Outstanding 201.23
Cost of Debt
Tax Rate 47.14
After-tax Cost of Debt 0.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.686
Total Debt 4,182.78
Total Equity 8,210.22
Total Capital 12,393
Debt Weighting 33.75
Equity Weighting 66.25
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 939.781,180.021,166.011,078.191,971.042,462.103,075.503,841.724,798.835,994.40
Operating Cash Flow 118179.97-11.6540.94576.09294.63368.03459.73574.26717.33
Capital Expenditure -917.54-1,304.35-1,308.07-1,080.52-996.92-2,320.02-2,898.02-3,620.03-4,521.91-5,648.48
Free Cash Flow -799.54-1,124.38-1,319.73-1,039.57-420.82-2,025.39-2,529.99-3,160.30-3,947.65-4,931.15
WACC
PV LFCF -1,879.71-2,179.13-2,526.25-2,928.66-3,395.17
SUM PV LFCF -12,908.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.75
Free cash flow (t + 1) -5,029.77
Terminal Value -87,474.31
Present Value of Terminal Value -60,227.41

Intrinsic Value

Enterprise Value -73,136.33
Net Debt 3,488.48
Equity Value -76,624.82
Shares Outstanding 201.23
Equity Value Per Share -380.78