Discounted Cash Flow (DCF) Analysis Levered

TerraVest Industries Inc. (TVK.TO)

$25.05

-0.15 (-0.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.82 | 25.05 | 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 192.53269.93306.29304.25307.46349.01396.18449.72510.50579.49
Revenue (%)
Operating Cash Flow 13.067.7830.9864.8823.0633.9338.5143.7249.6256.33
Operating Cash Flow (%)
Capital Expenditure -9.59-11.61-17.63-10.67-19.08-17.28-19.61-22.26-25.27-28.69
Capital Expenditure (%)
Free Cash Flow 3.46-3.8313.3554.203.9916.6518.9021.4524.3527.64

Weighted Average Cost Of Capital

Share price $ 25.05
Beta 0.612
Diluted Shares Outstanding 18.35
Cost of Debt
Tax Rate 20.48
After-tax Cost of Debt 1.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.395
Total Debt 190.61
Total Equity 459.72
Total Capital 650.33
Debt Weighting 29.31
Equity Weighting 70.69
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 192.53269.93306.29304.25307.46349.01396.18449.72510.50579.49
Operating Cash Flow 13.067.7830.9864.8823.0633.9338.5143.7249.6256.33
Capital Expenditure -9.59-11.61-17.63-10.67-19.08-17.28-19.61-22.26-25.27-28.69
Free Cash Flow 3.46-3.8313.3554.203.9916.6518.9021.4524.3527.64
WACC
PV LFCF 15.8517.1318.5220.0121.63
SUM PV LFCF 93.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.03
Free cash flow (t + 1) 28.20
Terminal Value 930.58
Present Value of Terminal Value 728.09

Intrinsic Value

Enterprise Value 821.23
Net Debt 182.25
Equity Value 638.98
Shares Outstanding 18.35
Equity Value Per Share 34.82