Discounted Cash Flow (DCF) Analysis Levered

Western Forest Products Inc. (WEF.TO)

$1.13

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.92 | 1.13 | 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 1,143.401,196.70807.70964.901,417.701,554.311,704.091,868.302,048.342,245.73
Revenue (%)
Operating Cash Flow 134.40118.2010.5080.40281.60158.94174.25191.04209.45229.64
Operating Cash Flow (%)
Capital Expenditure -55.20-95.10-37.20-18.70-33.10-67.31-73.80-80.91-88.71-97.25
Capital Expenditure (%)
Free Cash Flow 79.2023.10-26.7061.70248.5091.62100.45110.13120.75132.38

Weighted Average Cost Of Capital

Share price $ 1.13
Beta 2.019
Diluted Shares Outstanding 361.49
Cost of Debt
Tax Rate 24.06
After-tax Cost of Debt 7.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.137
Total Debt 18.30
Total Equity 408.48
Total Capital 426.78
Debt Weighting 4.29
Equity Weighting 95.71
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 1,143.401,196.70807.70964.901,417.701,554.311,704.091,868.302,048.342,245.73
Operating Cash Flow 134.40118.2010.5080.40281.60158.94174.25191.04209.45229.64
Capital Expenditure -55.20-95.10-37.20-18.70-33.10-67.31-73.80-80.91-88.71-97.25
Free Cash Flow 79.2023.10-26.7061.70248.5091.62100.45110.13120.75132.38
WACC
PV LFCF 81.1578.8076.5174.2972.14
SUM PV LFCF 382.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.91
Free cash flow (t + 1) 135.03
Terminal Value 1,237.67
Present Value of Terminal Value 674.44

Intrinsic Value

Enterprise Value 1,057.32
Net Debt -
Equity Value 1,057.32
Shares Outstanding 361.49
Equity Value Per Share 2.92