Discounted Cash Flow (DCF) Analysis Unlevered

Aurora Cannabis Inc. (ACB)

$0.6642

-0.04 (-5.55%)
All numbers are in Millions, Currency in USD
Stock DCF: -130.44 | 0.6642 | 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 55.20247.94278.91245.25221.34409.41757.271,400.702,590.844,792.21
Revenue (%)
EBITDA -78.46-214.66-393.23-137.20-143.09-401.46-742.58-1,373.52-2,540.57-4,699.24
EBITDA (%)
EBIT -90.72-302.92-508.12-235.28-236.75-549.92-1,017.17-1,881.44-3,480.05-6,436.96
EBIT (%)
Depreciation 12.2688.26114.8998.0893.66148.46274.60507.91939.481,737.73
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 149.37315.97169.25425.21439.14680.041,257.852,326.614,303.487,960.04
Total Cash (%)
Account Receivables 15.10112.3354.1156.4847.05111.64206.50381.95706.481,306.77
Account Receivables (%)
Inventories 43.22165.48157.26137.72139.93262.67485.85898.671,662.243,074.61
Inventories (%)
Accounts Payable 47.4638.6795.5713.2813.86120.79223.42413.25764.381,413.86
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 $ 0.6,642
Beta 3.019
Diluted Shares Outstanding 214.91
Cost of Debt
Tax Rate 0.12
After-tax Cost of Debt 26.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 18.874
Total Debt 269.49
Total Equity 142.74
Total Capital 412.24
Debt Weighting 65.37
Equity Weighting 34.63
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 55.20247.94278.91245.25221.34409.41757.271,400.702,590.844,792.21
EBITDA -78.46-214.66-393.23-137.20-143.09-401.46-742.58-1,373.52-2,540.57-4,699.24
EBIT -90.72-302.92-508.12-235.28-236.75-549.92-1,017.17-1,881.44-3,480.05-6,436.96
Tax Rate 6.97%9.23%2.46%0.90%0.12%3.94%3.94%3.94%3.94%3.94%
EBIAT -84.39-274.95-495.60-233.15-236.45-528.26-977.10-1,807.32-3,342.96-6,183.39
Depreciation 12.2688.26114.8998.0893.66148.46274.60507.91939.481,737.73
Accounts Receivable --97.2358.22-2.379.43-64.59-94.86-175.45-324.53-600.28
Inventories --122.268.2219.54-2.20-122.74-223.18-412.82-763.58-1,412.37
Accounts Payable --8.7856.90-82.300.58106.93102.63189.83351.13649.48
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 -209.08-829.27-612.38-253.28-167.20-934.03-1,794.36-3,318.98-6,139.03-11,355.22
WACC
PV UFCF -753.62-1,168.11-1,743.29-2,601.68-3,882.74
SUM PV UFCF -10,149.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 23.94
Free cash flow (t + 1) -11,582.32
Terminal Value -52,790.89
Present Value of Terminal Value -18,051.01

Intrinsic Value

Enterprise Value -28,200.45
Net Debt -168.32
Equity Value -28,032.13
Shares Outstanding 214.91
Equity Value Per Share -130.44