Discounted Cash Flow (DCF) Analysis Unlevered

Amerigo Resources Ltd. (ARG.TO)

$0.93

+0.06 (+6.90%)
All numbers are in Millions, Currency in USD
Stock DCF: 1.69 | 0.93 | undervalue

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 170.41177.92153.63178.38300.58357.21424.51504.50599.55712.52
Revenue (%)
EBITDA 32.8334.8111.5427.9781.9663.7975.8190.10107.07127.25
EBITDA (%)
EBIT 18.5120.05-5.9510.2763.9532.3638.4645.7154.3264.55
EBIT (%)
Depreciation 14.3214.7617.4917.6918.0131.4337.3544.3952.7562.69
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 20.227.941.067.9959.7929.5735.1441.7649.6358.98
Total Cash (%)
Account Receivables 9.3410.469.2321.3914.2924.3728.9634.4240.9048.61
Account Receivables (%)
Inventories 7.798.8410.327.277.7316.3619.4523.1127.4732.64
Inventories (%)
Accounts Payable 13.0519.4619.8414.5817.9832.6238.7746.0854.7665.07
Accounts Payable (%)
Capital Expenditure -14.69-35.96-10.68-2.79-11.96-29.52-35.09-41.70-49.55-58.89
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 0.93
Beta 2.906
Diluted Shares Outstanding 179.09
Cost of Debt
Tax Rate 34.18
After-tax Cost of Debt 6.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.681
Total Debt 33.85
Total Equity 166.56
Total Capital 200.41
Debt Weighting 16.89
Equity Weighting 83.11
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 170.41177.92153.63178.38300.58357.21424.51504.50599.55712.52
EBITDA 32.8334.8111.5427.9781.9663.7975.8190.10107.07127.25
EBIT 18.5120.05-5.9510.2763.9532.3638.4645.7154.3264.55
Tax Rate 37.78%32.04%26.15%7.28%34.18%27.49%27.49%27.49%27.49%27.49%
EBIAT 11.5213.63-4.399.5342.0923.4727.8933.1439.3946.81
Depreciation 14.3214.7617.4917.6918.0131.4337.3544.3952.7562.69
Accounts Receivable --1.121.23-12.157.10-10.08-4.59-5.46-6.48-7.71
Inventories --1.05-1.473.05-0.46-8.64-3.08-3.66-4.35-5.17
Accounts Payable -6.410.37-5.263.4014.646.157.318.6810.32
Capital Expenditure -14.69-35.96-10.68-2.79-11.96-29.52-35.09-41.70-49.55-58.89
UFCF 11.15-3.332.5510.0658.2021.3028.6334.0240.4348.05
WACC
PV UFCF 18.3921.3421.8922.4623.05
SUM PV UFCF 107.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 15.83
Free cash flow (t + 1) 49.01
Terminal Value 354.38
Present Value of Terminal Value 169.97

Intrinsic Value

Enterprise Value 277.09
Net Debt -25.95
Equity Value 303.03
Shares Outstanding 179.09
Equity Value Per Share 1.69