Discounted Cash Flow (DCF) Analysis Levered

Velan Inc. (VLN.TO)

$12.75

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: -17.15 | 12.75 | overvalue

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	337.96	366.87	371.63	302.06	411.24	439.28	469.24	501.23	535.41	571.92
Revenue (%)
Operating Cash Flow	-1.89	-9.59	9.64	-9.09	17.87	0.66	0.71	0.76	0.81	0.86
Operating Cash Flow (%)
Capital Expenditure	-6.64	-8.65	-12.08	-10.90	-8.62	-11.67	-12.46	-13.31	-14.22	-15.19
Capital Expenditure (%)
Free Cash Flow	-8.53	-18.24	-2.44	-20	9.25	-11	-11.75	-12.56	-13.41	-14.33

Weighted Average Cost Of Capital

Share price	$ 12.75
Beta	0.739
Diluted Shares Outstanding	21.61
Cost of Debt
Tax Rate	158.44
After-tax Cost of Debt	-3.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.893
Total Debt	44.02
Total Equity	275.59
Total Capital	319.61
Debt Weighting	13.77
Equity Weighting	86.23
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	337.96	366.87	371.63	302.06	411.24	439.28	469.24	501.23	535.41	571.92
Operating Cash Flow	-1.89	-9.59	9.64	-9.09	17.87	0.66	0.71	0.76	0.81	0.86
Capital Expenditure	-6.64	-8.65	-12.08	-10.90	-8.62	-11.67	-12.46	-13.31	-14.22	-15.19
Free Cash Flow	-8.53	-18.24	-2.44	-20	9.25	-11	-11.75	-12.56	-13.41	-14.33
WACC
PV LFCF						-10.44	-10.58	-10.71	-10.86	-11
SUM PV LFCF										-53.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.43
Free cash flow (t + 1)	-14.61
Terminal Value	-426.05
Present Value of Terminal Value	-327.07

Intrinsic Value

Enterprise Value	-380.65
Net Debt	-9.99
Equity Value	-370.66
Shares Outstanding	21.61
Equity Value Per Share	-17.15