Discounted Cash Flow (DCF) Analysis Levered

Tree Island Steel Ltd. (TSL.TO)

$3.4

+0.09 (+2.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.14 | 3.4 | 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 234.71235.31200.40215.89301.85326.72353.65382.80414.35448.49
Revenue (%)
Operating Cash Flow 15.07-3.9026.2124.6811.8721.7023.4825.4227.5229.78
Operating Cash Flow (%)
Capital Expenditure -6.58-8.54-1.94-2.72-12.13-8.29-8.97-9.71-10.51-11.37
Capital Expenditure (%)
Free Cash Flow 8.49-12.4424.2721.95-0.2613.4114.5215.7117.0118.41

Weighted Average Cost Of Capital

Share price $ 3.4
Beta 1.231
Diluted Shares Outstanding 28.77
Cost of Debt
Tax Rate 22.48
After-tax Cost of Debt 4.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.506
Total Debt 41.02
Total Equity 97.83
Total Capital 138.85
Debt Weighting 29.54
Equity Weighting 70.46
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 234.71235.31200.40215.89301.85326.72353.65382.80414.35448.49
Operating Cash Flow 15.07-3.9026.2124.6811.8721.7023.4825.4227.5229.78
Capital Expenditure -6.58-8.54-1.94-2.72-12.13-8.29-8.97-9.71-10.51-11.37
Free Cash Flow 8.49-12.4424.2721.95-0.2613.4114.5215.7117.0118.41
WACC
PV LFCF 12.4112.4212.4412.4512.47
SUM PV LFCF 62.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.10
Free cash flow (t + 1) 18.78
Terminal Value 307.80
Present Value of Terminal Value 208.52

Intrinsic Value

Enterprise Value 270.71
Net Debt 7.77
Equity Value 262.94
Shares Outstanding 28.77
Equity Value Per Share 9.14