Discounted Cash Flow (DCF) Analysis Unlevered

Borr Drilling Limited (BORR)

$6.03

-0.16 (-2.58%)
All numbers are in Millions, Currency in USD
Stock DCF: -116.98 | 6.03 | 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 164.90334.10307.50245.30443.80616.15855.431,187.641,648.852,289.18
Revenue (%)
EBITDA -80.40-75.700.3028101.80-45.55-63.24-87.80-121.90-169.24
EBITDA (%)
EBIT -159.90-177.10-117.60-91.60-14.70-282.04-391.57-543.64-754.76-1,047.87
EBIT (%)
Depreciation 79.50101.40117.90119.60116.50236.49328.33455.84632.86878.63
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 32.1059.1019.2034.90108101140.23194.68270.29375.25
Total Cash (%)
Account Receivables 88110.509999.20186.30247.76343.97477.56663.02920.50
Account Receivables (%)
Inventories 83.40102.2018.1027.1050.50134.91187.30260.04361.03501.23
Inventories (%)
Accounts Payable 9.6014.1020.3034.7047.7051.1971.0798.66136.98190.17
Accounts Payable (%)
Capital Expenditure -393.60-271.60-42.40-18.90-83.30-443.93-616.33-855.68-1,187.99-1,649.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.03
Beta 2.513
Diluted Shares Outstanding 178.40
Cost of Debt
Tax Rate -6.71
After-tax Cost of Debt 7.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.071
Total Debt 1,637.50
Total Equity 1,075.78
Total Capital 2,713.28
Debt Weighting 60.35
Equity Weighting 39.65
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 164.90334.10307.50245.30443.80616.15855.431,187.641,648.852,289.18
EBITDA -80.40-75.700.3028101.80-45.55-63.24-87.80-121.90-169.24
EBIT -159.90-177.10-117.60-91.60-14.70-282.04-391.57-543.64-754.76-1,047.87
Tax Rate -1.11%-3.77%-5.61%-5.29%-6.71%-4.50%-4.50%-4.50%-4.50%-4.50%
EBIAT -161.68-183.78-124.19-96.45-15.69-294.73-409.18-568.09-788.71-1,095
Depreciation 79.50101.40117.90119.60116.50236.49328.33455.84632.86878.63
Accounts Receivable --22.5011.50-0.20-87.10-61.46-96.22-133.58-185.46-257.48
Inventories --18.8084.10-9-23.40-84.41-52.39-72.74-100.99-140.21
Accounts Payable -4.506.2014.40133.4919.8827.6038.3253.20
Capital Expenditure -393.60-271.60-42.40-18.90-83.30-443.93-616.33-855.68-1,187.99-1,649.34
UFCF -475.78-390.7853.119.45-79.99-644.55-825.92-1,146.66-1,591.96-2,210.20
WACC
PV UFCF -580.73-670.45-838.65-1,049.05-1,312.24
SUM PV UFCF -4,451.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.99
Free cash flow (t + 1) -2,254.40
Terminal Value -25,076.80
Present Value of Terminal Value -14,888.56

Intrinsic Value

Enterprise Value -19,339.69
Net Debt 1,529.50
Equity Value -20,869.19
Shares Outstanding 178.40
Equity Value Per Share -116.98