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 6,142.706,633.205,888.305,748.105,634.705,527.665,422.655,319.645,218.595,119.45
Revenue (%)
EBITDA 198.90146.60185.70252.60294201.36197.54193.78190.10186.49
EBITDA (%)
EBIT 122.4057.5050.30127.90167.7098.5696.6994.8593.0591.28
EBIT (%)
Depreciation 76.5089.10135.40124.70126.30102.80100.8598.9397.0695.21
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 515.20422479.50463.80394419.59411.62403.80396.13388.60
Total Cash (%)
Account Receivables 766.401,211.601,060.401,100.201,268.90999.52980.53961.90943.63925.70
Account Receivables (%)
Inventories 1,061.801,089.90992.201,091.501,6971,101.911,080.981,060.451,040.301,020.54
Inventories (%)
Accounts Payable 931.101,126.70898854.501,238.30931.26913.57896.21879.19862.49
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 6,142.706,633.205,888.305,748.105,634.705,527.665,422.655,319.645,218.595,119.45
EBITDA 198.90146.60185.70252.60294201.36197.54193.78190.10186.49
EBIT 122.4057.5050.30127.90167.7098.5696.6994.8593.0591.28
Tax Rate 20.74%-20.76%29.56%32.82%23.60%17.19%17.19%17.19%17.19%17.19%
EBIAT 97.0269.4435.4385.93128.1281.6180.0678.5477.0575.59
Depreciation 76.5089.10135.40124.70126.30102.80100.8598.9397.0695.21
Accounts Receivable --445.20151.20-39.80-168.70269.3818.9918.6318.2717.93
Inventories --28.1097.70-99.30-605.50595.0920.9320.5320.1419.76
Accounts Payable -195.60-228.70-43.50383.80-307.04-17.69-17.35-17.02-16.70
Capital Expenditure -102.60-82.20-80.50-52.80-52.20-67.68-66.39-65.13-63.89-62.68
UFCF 70.92-201.36110.53-24.77-188.18674.17136.75134.16131.61129.11
WACC
PV UFCF 614.45113.60101.5790.8181.19
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