Discounted Cash Flow (DCF) Analysis Unlevered
Babcock & Wilcox Enterprises, Inc. (BW)
$1.53
-0.20 (-%)
All numbers are in Millions, Currency in USD
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 | 1,062.39 | 859.10 | 566.30 | 723.40 | 889.80 | 884.30 | 878.83 | 873.40 | 868 | 862.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -400.92 | 26.10 | 28.70 | 75.80 | 53.10 | -23.32 | -23.18 | -23.03 | -22.89 | -22.75 |
| EBITDA (%) | ||||||||||
| EBIT | -432.92 | 2.50 | 11.90 | 57.50 | 29.10 | -48 | -47.70 | -47.41 | -47.11 | -46.82 |
| EBIT (%) | ||||||||||
| Depreciation | 32 | 23.60 | 16.80 | 18.30 | 24 | 24.68 | 24.52 | 24.37 | 24.22 | 24.07 |
| 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 | 43.21 | 43.80 | 57.30 | 224.90 | 76.70 | 104.34 | 103.69 | 103.05 | 102.41 | 101.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 386.59 | 257.10 | 223 | 246.90 | 335.90 | 314.06 | 312.12 | 310.19 | 308.27 | 306.36 |
| Account Receivables (%) | ||||||||||
| Inventories | 61.32 | 63.10 | 67.20 | 79.50 | 102.60 | 84.02 | 83.50 | 82.98 | 82.47 | 81.96 |
| Inventories (%) | ||||||||||
| Accounts Payable | 199.88 | 109.90 | 73.50 | 85.90 | 139.20 | 127.52 | 126.73 | 125.95 | 125.17 | 124.40 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -5.47 | -3.80 | -8.20 | -6.70 | -13.20 | -8.52 | -8.46 | -8.41 | -8.36 | -8.31 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.53 |
|---|---|
| Beta | 2.084 |
| Diluted Shares Outstanding | 88.26 |
| Cost of Debt | |
| Tax Rate | -71.61 |
| After-tax Cost of Debt | 10.92% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 13.973 |
| Total Debt | 411.90 |
| Total Equity | 135.03 |
| Total Capital | 546.93 |
| Debt Weighting | 75.31 |
| Equity Weighting | 24.69 |
| 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 | 1,062.39 | 859.10 | 566.30 | 723.40 | 889.80 | 884.30 | 878.83 | 873.40 | 868 | 862.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -400.92 | 26.10 | 28.70 | 75.80 | 53.10 | -23.32 | -23.18 | -23.03 | -22.89 | -22.75 |
| EBIT | -432.92 | 2.50 | 11.90 | 57.50 | 29.10 | -48 | -47.70 | -47.41 | -47.11 | -46.82 |
| Tax Rate | -30.49% | -4.26% | -210.26% | -5.46% | -71.61% | -64.42% | -64.42% | -64.42% | -64.42% | -64.42% |
| EBIAT | -564.94 | 2.61 | 36.92 | 60.64 | 49.94 | -78.92 | -78.43 | -77.94 | -77.46 | -76.98 |
| Depreciation | 32 | 23.60 | 16.80 | 18.30 | 24 | 24.68 | 24.52 | 24.37 | 24.22 | 24.07 |
| Accounts Receivable | - | 129.49 | 34.10 | -23.90 | -89 | 21.84 | 1.94 | 1.93 | 1.92 | 1.91 |
| Inventories | - | -1.78 | -4.10 | -12.30 | -23.10 | 18.58 | 0.52 | 0.52 | 0.51 | 0.51 |
| Accounts Payable | - | -89.98 | -36.40 | 12.40 | 53.30 | -11.68 | -0.79 | -0.78 | -0.78 | -0.77 |
| Capital Expenditure | -5.47 | -3.80 | -8.20 | -6.70 | -13.20 | -8.52 | -8.46 | -8.41 | -8.36 | -8.31 |
| UFCF | -538.41 | 60.14 | 39.12 | 48.44 | 1.94 | -34 | -60.69 | -60.32 | -59.95 | -59.57 |
| WACC | ||||||||||
| PV UFCF | -30.45 | -48.67 | -43.31 | -38.55 | -34.31 | |||||
| SUM PV UFCF | -195.29 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.67 |
| Free cash flow (t + 1) | -60.77 |
| Terminal Value | -628.40 |
| Present Value of Terminal Value | -361.87 |
Intrinsic Value
| Enterprise Value | -557.16 |
|---|---|
| Net Debt | 335.20 |
| Equity Value | -892.36 |
| Shares Outstanding | 88.26 |
| Equity Value Per Share | -10.11 |