Discounted Cash Flow (DCF) Analysis Levered

Verso Corporation (VRS)

$26.99

+0.04 (+0.15%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.26 | 26.99 | overvalue

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 2,4612,6822,4441,3591,2781,117.46977.08854.34747.01653.17
Revenue (%)
Operating Cash Flow 153283125-6218070.1961.3753.6646.9241.03
Operating Cash Flow (%)
Capital Expenditure -40-73-105-48-66-38.75-33.88-29.63-25.91-22.65
Capital Expenditure (%)
Free Cash Flow 11321020-11011431.4427.4924.0321.0118.37

Weighted Average Cost Of Capital

Share price $ 26.99
Beta 2.004
Diluted Shares Outstanding 34.23
Cost of Debt
Tax Rate 50.00
After-tax Cost of Debt 7.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.352
Total Debt 13
Total Equity 923.92
Total Capital 936.92
Debt Weighting 1.39
Equity Weighting 98.61
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 2,4612,6822,4441,3591,2781,117.46977.08854.34747.01653.17
Operating Cash Flow 153283125-6218070.1961.3753.6646.9241.03
Capital Expenditure -40-73-105-48-66-38.75-33.88-29.63-25.91-22.65
Free Cash Flow 11321020-11011431.4427.4924.0321.0118.37
WACC
PV LFCF 2821.8016.9713.2210.29
SUM PV LFCF 90.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.29
Free cash flow (t + 1) 18.74
Terminal Value 182.14
Present Value of Terminal Value 102.02

Intrinsic Value

Enterprise Value 192.31
Net Debt -159
Equity Value 351.31
Shares Outstanding 34.23
Equity Value Per Share 10.26