Discounted Cash Flow (DCF) Analysis Levered

Western Forest Products Inc. (WEF.TO)

$1.05

+0.03 (+2.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.09 | 1.05 | undervalue

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 1,196.70807.70964.901,417.701,4441,573.021,713.561,866.662,033.452,215.13
Revenue (%)
Operating Cash Flow 118.2010.5080.40281.60-10.30121.62132.49144.33157.22171.27
Operating Cash Flow (%)
Capital Expenditure -95.10-37.20-18.70-33.10-46.50-63.06-68.70-74.84-81.52-88.81
Capital Expenditure (%)
Free Cash Flow 23.10-26.7061.70248.50-56.8058.5663.7969.4975.7082.46

Weighted Average Cost Of Capital

Share price $ 1.05
Beta 1.951
Diluted Shares Outstanding 325.14
Cost of Debt
Tax Rate 26.90
After-tax Cost of Debt 7.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.895
Total Debt 20.60
Total Equity 341.40
Total Capital 362
Debt Weighting 5.69
Equity Weighting 94.31
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 1,196.70807.70964.901,417.701,4441,573.021,713.561,866.662,033.452,215.13
Operating Cash Flow 118.2010.5080.40281.60-10.30121.62132.49144.33157.22171.27
Capital Expenditure -95.10-37.20-18.70-33.10-46.50-63.06-68.70-74.84-81.52-88.81
Free Cash Flow 23.10-26.7061.70248.50-56.8058.5663.7969.4975.7082.46
WACC
PV LFCF 28.7527.8126.9126.0425.19
SUM PV LFCF 243.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.59
Free cash flow (t + 1) 84.11
Terminal Value 794.28
Present Value of Terminal Value 439.01

Intrinsic Value

Enterprise Value 682.72
Net Debt 4.80
Equity Value 677.92
Shares Outstanding 325.14
Equity Value Per Share 2.09