Discounted Cash Flow (DCF) Analysis Unlevered

Celestica Inc. (CLS)

$8.41

-0.06 (-0.71%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.21 | 8.41 | 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	6,142.70	6,633.20	5,888.30	5,748.10	5,634.70	5,527.66	5,422.65	5,319.64	5,218.59	5,119.45
Revenue (%)
EBITDA	198.90	146.60	185.70	252.60	294	201.36	197.54	193.78	190.10	186.49
EBITDA (%)
EBIT	122.40	57.50	50.30	127.90	167.70	98.56	96.69	94.85	93.05	91.28
EBIT (%)
Depreciation	76.50	89.10	135.40	124.70	126.30	102.80	100.85	98.93	97.06	95.21
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	515.20	422	479.50	463.80	394	419.59	411.62	403.80	396.13	388.60
Total Cash (%)
Account Receivables	766.40	1,211.60	1,060.40	1,100.20	1,268.90	999.52	980.53	961.90	943.63	925.70
Account Receivables (%)
Inventories	1,061.80	1,089.90	992.20	1,091.50	1,697	1,101.91	1,080.98	1,060.45	1,040.30	1,020.54
Inventories (%)
Accounts Payable	931.10	1,126.70	898	854.50	1,238.30	931.26	913.57	896.21	879.19	862.49
Accounts Payable (%)
Capital Expenditure	-102.60	-82.20	-80.50	-52.80	-52.20	-67.68	-66.39	-65.13	-63.89	-62.68
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 8.41
Beta	2.308
Diluted Shares Outstanding	126.70
Cost of Debt
Tax Rate	23.60
After-tax Cost of Debt	3.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.698
Total Debt	794.40
Total Equity	1,065.55
Total Capital	1,859.95
Debt Weighting	42.71
Equity Weighting	57.29
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	6,142.70	6,633.20	5,888.30	5,748.10	5,634.70	5,527.66	5,422.65	5,319.64	5,218.59	5,119.45
EBITDA	198.90	146.60	185.70	252.60	294	201.36	197.54	193.78	190.10	186.49
EBIT	122.40	57.50	50.30	127.90	167.70	98.56	96.69	94.85	93.05	91.28
Tax Rate	20.74%	-20.76%	29.56%	32.82%	23.60%	17.19%	17.19%	17.19%	17.19%	17.19%
EBIAT	97.02	69.44	35.43	85.93	128.12	81.61	80.06	78.54	77.05	75.59
Depreciation	76.50	89.10	135.40	124.70	126.30	102.80	100.85	98.93	97.06	95.21
Accounts Receivable	-	-445.20	151.20	-39.80	-168.70	269.38	18.99	18.63	18.27	17.93
Inventories	-	-28.10	97.70	-99.30	-605.50	595.09	20.93	20.53	20.14	19.76
Accounts Payable	-	195.60	-228.70	-43.50	383.80	-307.04	-17.69	-17.35	-17.02	-16.70
Capital Expenditure	-102.60	-82.20	-80.50	-52.80	-52.20	-67.68	-66.39	-65.13	-63.89	-62.68
UFCF	70.92	-201.36	110.53	-24.77	-188.18	674.17	136.75	134.16	131.61	129.11
WACC
PV UFCF						614.45	113.60	101.57	90.81	81.19
SUM PV UFCF										1,001.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.72
Free cash flow (t + 1)	131.69
Terminal Value	1,705.81
Present Value of Terminal Value	1,072.76

Intrinsic Value

Enterprise Value	2,074.37
Net Debt	400.40
Equity Value	1,673.97
Shares Outstanding	126.70
Equity Value Per Share	13.21