Discounted Cash Flow (DCF) Analysis Unlevered

Babcock & Wilcox Enterprises, Inc. (BW)

$6.77

-0.56 (-7.64%)
All numbers are in Millions, Currency in USD
Stock DCF: -10.81 | 6.77 | 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 1,557.731,062.39859.11566.32723619.34530.55454.49389.33333.51
Revenue (%)
EBITDA -254.83-564.40-48.6957.998-79.04-67.70-58-49.68-42.56
EBITDA (%)
EBIT -294.97-596.40-72.3041.19-10-96.12-82.34-70.54-60.42-51.76
EBIT (%)
Depreciation 40.143223.6116.801817.0914.6412.5410.749.20
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 56.6743.2143.7757.3422466.7757.204941.9835.96
Total Cash (%)
Account Receivables 531.89386.59257.04223.07132195.84167.76143.71123.11105.46
Account Receivables (%)
Inventories 82.1661.3263.1067.167951.0143.6937.4332.0627.47
Inventories (%)
Accounts Payable 225.23199.88109.9173.488587.7075.1364.3555.1347.22
Accounts Payable (%)
Capital Expenditure -14.28-5.47-3.80-8.23-6-5.15-4.41-3.78-3.24-2.77
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.77
Beta 2.396
Diluted Shares Outstanding 83.58
Cost of Debt
Tax Rate -6.90
After-tax Cost of Debt -69.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 15.058
Total Debt 56.10
Total Equity 565.84
Total Capital 621.94
Debt Weighting 9.02
Equity Weighting 90.98
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 1,557.731,062.39859.11566.32723619.34530.55454.49389.33333.51
EBITDA -254.83-564.40-48.6957.998-79.04-67.70-58-49.68-42.56
EBIT -294.97-596.40-72.3041.19-10-96.12-82.34-70.54-60.42-51.76
Tax Rate -20.89%-30.49%1.99%-163.35%-6.90%-43.93%-43.93%-43.93%-43.93%-43.93%
EBIAT -356.58-778.27-70.86108.46-10.69-138.35-118.51-101.52-86.97-74.50
Depreciation 40.143223.6116.801817.0914.6412.5410.749.20
Accounts Receivable -145.30129.5533.9891.07-63.8428.0824.0520.6017.65
Inventories -20.84-1.78-4.06-11.8427.997.316.265.374.60
Accounts Payable --25.35-89.97-36.4311.522.70-12.57-10.77-9.23-7.90
Capital Expenditure -14.28-5.47-3.80-8.23-6-5.15-4.41-3.78-3.24-2.77
UFCF -330.72-610.95-13.26110.5292.06-159.56-85.47-73.22-62.72-53.73
WACC
PV UFCF -148.52-74.06-59.05-47.09-37.55
SUM PV UFCF -366.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.43
Free cash flow (t + 1) -54.80
Terminal Value -1,009.25
Present Value of Terminal Value -705.29

Intrinsic Value

Enterprise Value -1,071.56
Net Debt -167.90
Equity Value -903.66
Shares Outstanding 83.58
Equity Value Per Share -10.81