Discounted Cash Flow (DCF) Analysis Levered

TMX Group Limited (X.TO)

$142.43

+1.39 (+0.99%)
All numbers are in Millions, Currency in USD
Stock DCF: 215.41 | 142.43 | 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 668.90817.10806.90865.10980.701,082.411,194.661,318.551,455.301,606.22
Revenue (%)
Operating Cash Flow 276.60347.10344410.90441.40474.03523.19577.45637.33703.43
Operating Cash Flow (%)
Capital Expenditure -39.60-58.80-57.60-67.10-51.20-71.94-79.40-87.64-96.72-106.76
Capital Expenditure (%)
Free Cash Flow 237288.30286.40343.80390.20402.09443.79489.81540.61596.67

Weighted Average Cost Of Capital

Share price $ 142.43
Beta 0.565
Diluted Shares Outstanding 56.47
Cost of Debt
Tax Rate 29.38
After-tax Cost of Debt 5.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.197
Total Debt 1,096.70
Total Equity 8,043.73
Total Capital 9,140.43
Debt Weighting 12.00
Equity Weighting 88.00
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 668.90817.10806.90865.10980.701,082.411,194.661,318.551,455.301,606.22
Operating Cash Flow 276.60347.10344410.90441.40474.03523.19577.45637.33703.43
Capital Expenditure -39.60-58.80-57.60-67.10-51.20-71.94-79.40-87.64-96.72-106.76
Free Cash Flow 237288.30286.40343.80390.20402.09443.79489.81540.61596.67
WACC
PV LFCF 378.76393.78409.40425.64442.52
SUM PV LFCF 2,050.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.16
Free cash flow (t + 1) 608.60
Terminal Value 14,629.92
Present Value of Terminal Value 10,850.19

Intrinsic Value

Enterprise Value 12,900.27
Net Debt 734.80
Equity Value 12,165.47
Shares Outstanding 56.47
Equity Value Per Share 215.41