Discounted Cash Flow (DCF) Analysis Levered

Westshore Terminals Investment Corp... (WTE.TO)

$23.75

-2.01 (-7.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 34.08 | 23.75 | 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	330.03	363.37	395.42	368.41	340.47	344.31	348.19	352.11	356.08	360.09
Revenue (%)
Operating Cash Flow	133.20	161.32	164.02	176.39	136.57	147.52	149.18	150.86	152.56	154.28
Operating Cash Flow (%)
Capital Expenditure	-49.64	-48.11	-21.53	-16.89	-8.11	-28.02	-28.34	-28.66	-28.98	-29.31
Capital Expenditure (%)
Free Cash Flow	83.56	113.21	142.48	159.51	128.46	119.50	120.84	122.21	123.58	124.98

Weighted Average Cost Of Capital

Share price	$ 23.75
Beta	0.959
Diluted Shares Outstanding	63.26
Cost of Debt
Tax Rate	26.99
After-tax Cost of Debt	3.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.077
Total Debt	283.32
Total Equity	1,502.45
Total Capital	1,785.78
Debt Weighting	15.87
Equity Weighting	84.13
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	330.03	363.37	395.42	368.41	340.47	344.31	348.19	352.11	356.08	360.09
Operating Cash Flow	133.20	161.32	164.02	176.39	136.57	147.52	149.18	150.86	152.56	154.28
Capital Expenditure	-49.64	-48.11	-21.53	-16.89	-8.11	-28.02	-28.34	-28.66	-28.98	-29.31
Free Cash Flow	83.56	113.21	142.48	159.51	128.46	119.50	120.84	122.21	123.58	124.98
WACC
PV LFCF						111.39	105	98.98	93.30	87.95
SUM PV LFCF										496.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.28
Free cash flow (t + 1)	127.47
Terminal Value	2,414.29
Present Value of Terminal Value	1,699.01

Intrinsic Value

Enterprise Value	2,195.62
Net Debt	39.83
Equity Value	2,155.79
Shares Outstanding	63.26
Equity Value Per Share	34.08