Discounted Cash Flow (DCF) Analysis Unlevered

ATCO Ltd. (ACO-X.TO)

$42.83

-0.30 (-0.70%)
All numbers are in Millions, Currency in USD
Stock DCF: -171.89 | 42.83 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4,5414,8884,7063,9444,2894,251.194,213.714,176.564,139.734,103.24
Revenue (%)
EBITDA 1,4621,7401,7221,5091,5341,516.921,503.541,490.291,477.151,464.13
EBITDA (%)
EBIT 7921,0581,085840817871.40863.71856.10848.55841.07
EBIT (%)
Depreciation 670682637669717645.52639.83634.19628.60623.06
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 4496271,0611,0641,073826.91819.62812.39805.23798.13
Total Cash (%)
Account Receivables 776883740736856760.94754.23747.58740.99734.46
Account Receivables (%)
Inventories 706664766164.6364.0663.4962.9362.38
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -1,329-1,234-1,202-1,028-1,346-1,169.09-1,158.78-1,148.57-1,138.44-1,128.40
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 42.83
Beta 0.741
Diluted Shares Outstanding 114.71
Cost of Debt
Tax Rate 60.13
After-tax Cost of Debt 1.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.226
Total Debt 10,151
Total Equity 4,913.14
Total Capital 15,064.14
Debt Weighting 67.39
Equity Weighting 32.61
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4,5414,8884,7063,9444,2894,251.194,213.714,176.564,139.734,103.24
EBITDA 1,4621,7401,7221,5091,5341,516.921,503.541,490.291,477.151,464.13
EBIT 7921,0581,085840817871.40863.71856.10848.55841.07
Tax Rate 67.52%63.64%52.19%61.99%60.13%61.09%61.09%61.09%61.09%61.09%
EBIAT 257.24384.73518.74319.28325.74339.03336.04333.08330.14327.23
Depreciation 670682637669717645.52639.83634.19628.60623.06
Accounts Receivable --1071434-12095.066.716.656.596.53
Inventories -42-1215-3.630.570.560.560.55
Accounts Payable ----------
Capital Expenditure -1,329-1,234-1,202-1,028-1,346-1,169.09-1,158.78-1,148.57-1,138.44-1,128.40
UFCF -401.76-270.2798.74-47.72-408.26-93.10-175.63-174.08-172.55-171.03
WACC
PV UFCF -89.97-164.02-157.10-150.48-144.14
SUM PV UFCF -705.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.48
Free cash flow (t + 1) -174.45
Terminal Value -11,787.02
Present Value of Terminal Value -9,933.95

Intrinsic Value

Enterprise Value -10,639.67
Net Debt 9,078
Equity Value -19,717.67
Shares Outstanding 114.71
Equity Value Per Share -171.89