Discounted Cash Flow (DCF) Analysis Unlevered

Aurora Cannabis Inc. (ACB)

$0.5274

+0.01 (+2.35%)

All numbers are in Millions, Currency in USD

Stock DCF: -353.53 | 0.5274 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	55.20	247.94	278.91	245.25	221.34	409.41	757.27	1,400.70	2,590.84	4,792.21
Revenue (%)
EBITDA	94.58	-191.86	-3,174.65	-535.43	-1,554.29	-1,608.82	-2,975.79	-5,504.25	-10,181.08	-18,831.71
EBITDA (%)
EBIT	82.32	-280.12	-3,289.54	-633.51	-1,647.95	-1,757.28	-3,250.39	-6,012.17	-11,120.56	-20,569.43
EBIT (%)
Depreciation	12.26	88.26	114.89	98.08	93.66	148.46	274.60	507.91	939.48	1,737.73
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	149.37	315.97	169.25	425.21	439.14	680.04	1,257.85	2,326.61	4,303.48	7,960.04
Total Cash (%)
Account Receivables	15.10	112.33	54.11	56.48	47.05	111.64	206.50	381.95	706.48	1,306.77
Account Receivables (%)
Inventories	43.22	165.48	157.26	137.72	139.93	262.67	485.85	898.67	1,662.24	3,074.61
Inventories (%)
Accounts Payable	47.46	38.67	19.71	13.28	13.86	98.51	182.22	337.05	623.43	1,153.14
Accounts Payable (%)
Capital Expenditure	-136.95	-414.30	-355.01	-53.08	-32.21	-473.83	-876.44	-1,621.13	-2,998.57	-5,546.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 0.5,274
Beta	3.000
Diluted Shares Outstanding	169.12
Cost of Debt
Tax Rate	0.15
After-tax Cost of Debt	26.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	17.905
Total Debt	269.49
Total Equity	89.19
Total Capital	358.68
Debt Weighting	75.13
Equity Weighting	24.87
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	55.20	247.94	278.91	245.25	221.34	409.41	757.27	1,400.70	2,590.84	4,792.21
EBITDA	94.58	-191.86	-3,174.65	-535.43	-1,554.29	-1,608.82	-2,975.79	-5,504.25	-10,181.08	-18,831.71
EBIT	82.32	-280.12	-3,289.54	-633.51	-1,647.95	-1,757.28	-3,250.39	-6,012.17	-11,120.56	-20,569.43
Tax Rate	6.97%	11.39%	2.96%	0.88%	0.15%	4.47%	4.47%	4.47%	4.47%	4.47%
EBIAT	76.58	-248.21	-3,192.11	-627.92	-1,645.56	-1,678.72	-3,105.08	-5,743.40	-10,623.42	-19,649.89
Depreciation	12.26	88.26	114.89	98.08	93.66	148.46	274.60	507.91	939.48	1,737.73
Accounts Receivable	-	-97.23	58.22	-2.37	9.43	-64.59	-94.86	-175.45	-324.53	-600.28
Inventories	-	-122.26	8.22	19.54	-2.20	-122.74	-223.18	-412.82	-763.58	-1,412.37
Accounts Payable	-	-8.78	-18.97	-6.43	0.58	84.66	83.71	154.83	286.38	529.71
Capital Expenditure	-136.94	-414.30	-355.01	-53.08	-32.21	-473.83	-876.44	-1,621.13	-2,998.57	-5,546.38
UFCF	-48.10	-802.52	-3,384.75	-572.19	-1,576.31	-2,106.77	-3,941.26	-7,290.06	-13,484.24	-24,941.48
WACC
PV UFCF						-1,692.86	-2,544.75	-3,782.22	-5,621.43	-8,355.02
SUM PV UFCF										-21,996.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	24.45
Free cash flow (t + 1)	-25,440.31
Terminal Value	-113,319.86
Present Value of Terminal Value	-37,960.46

Intrinsic Value

Enterprise Value	-59,956.75
Net Debt	-168.32
Equity Value	-59,788.43
Shares Outstanding	169.12
Equity Value Per Share	-353.53