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	192.53	269.93	306.29	304.25	307.46	349.01	396.18	449.72	510.50	579.49
Revenue (%)
Operating Cash Flow	13.06	7.78	30.98	64.88	23.06	33.93	38.51	43.72	49.62	56.33
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	-3.83	13.35	54.20	3.99	16.65	18.90	21.45	24.35	27.64

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	192.53	269.93	306.29	304.25	307.46	349.01	396.18	449.72	510.50	579.49
Operating Cash Flow	13.06	7.78	30.98	64.88	23.06	33.93	38.51	43.72	49.62	56.33
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	-3.83	13.35	54.20	3.99	16.65	18.90	21.45	24.35	27.64
WACC
PV LFCF						15.85	17.13	18.52	20.01	21.63
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