Discounted Cash Flow (DCF) Analysis Levered
Two Harbors Investment Corp. (TWO-PA)
$20.18
-0.03 (-0.15%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 185.73 | 427.56 | -1,562.03 | 255.22 | 295.54 | -26.36 | 2.35 | -0.21 | 0.02 | -0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 702.87 | 1,056.64 | 631.60 | 423.51 | 623.40 | -50.71 | 4.52 | -0.40 | 0.04 | -0 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -976.39 | -613.66 | -622.41 | -742.15 | -629.81 | 59.74 | -5.33 | 0.48 | -0.04 | 0 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -273.52 | 442.97 | 9.20 | -318.64 | -6.41 | 9.03 | -0.81 | 0.07 | -0.01 | 0 |
Weighted Average Cost Of Capital
| Share price | $ 20.18 |
|---|---|
| Beta | 0.000 |
| Diluted Shares Outstanding | 0 |
| Cost of Debt | |
| Tax Rate | 42.43 |
| After-tax Cost of Debt | 21.86% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 3.564 |
| Total Debt | 680.51 |
| Total Equity | 0.04 |
| Total Capital | 680.55 |
| Debt Weighting | 99.99 |
| Equity Weighting | 0.01 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 185.73 | 427.56 | -1,562.03 | 255.22 | 295.54 | -26.36 | 2.35 | -0.21 | 0.02 | -0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 702.87 | 1,056.64 | 631.60 | 423.51 | 623.40 | -50.71 | 4.52 | -0.40 | 0.04 | -0 |
| Capital Expenditure | -976.39 | -613.66 | -622.41 | -742.15 | -629.81 | 59.74 | -5.33 | 0.48 | -0.04 | 0 |
| Free Cash Flow | -273.52 | 442.97 | 9.20 | -318.64 | -6.41 | 9.03 | -0.81 | 0.07 | -0.01 | 0 |
| WACC | ||||||||||
| PV LFCF | 7.41 | -0.54 | 0.04 | -0 | 0 | |||||
| SUM PV LFCF | 6.90 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 21.86 |
| Free cash flow (t + 1) | 0 |
| Terminal Value | 0 |
| Present Value of Terminal Value | 0 |
Intrinsic Value
| Enterprise Value | 6.90 |
|---|---|
| Net Debt | -2.97 |
| Equity Value | 9.88 |
| Shares Outstanding | 0 |
| Equity Value Per Share | 4,638.99 |