Discounted Cash Flow (DCF) Analysis Unlevered

Doman Building Materials Group Ltd. (DBM.TO)

$5.88

-0.01 (-0.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 19.17 | 5.88 | 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 1,135.951,291.301,334.201,613.802,543.673,151.453,904.444,837.365,993.177,425.16
Revenue (%)
EBITDA 57.8669.9483.66140.99218.57214.98266.35329.99408.84506.53
EBITDA (%)
EBIT 43.1051.5241.8596.34163.51146.97182.09225.59279.50346.28
EBIT (%)
Depreciation 14.7618.4241.8144.6555.0668.0184.27104.40129.34160.25
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 6.740.494.215.108.039.9512.3315.2718.9223.44
Total Cash (%)
Account Receivables 107.11106.59107.35132.55215.17267.26331.12410.23508.25629.69
Account Receivables (%)
Inventories 221.50284.39284.65246.85405.67593.11734.83910.401,127.931,397.44
Inventories (%)
Accounts Payable 83.6280.8182.55113.95156.70208.17257.91319.54395.89490.48
Accounts Payable (%)
Capital Expenditure -6.47-10.21-7.32-2.81-6.86-14.83-18.37-22.76-28.20-34.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 5.88
Beta 1.622
Diluted Shares Outstanding 77.93
Cost of Debt
Tax Rate 23.08
After-tax Cost of Debt 2.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.184
Total Debt 841.90
Total Equity 458.23
Total Capital 1,300.14
Debt Weighting 64.76
Equity Weighting 35.24
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 1,135.951,291.301,334.201,613.802,543.673,151.453,904.444,837.365,993.177,425.16
EBITDA 57.8669.9483.66140.99218.57214.98266.35329.99408.84506.53
EBIT 43.1051.5241.8596.34163.51146.97182.09225.59279.50346.28
Tax Rate 19.50%27.05%21.94%27.37%23.08%23.79%23.79%23.79%23.79%23.79%
EBIAT 34.6937.5832.6669.97125.77112.01138.77171.93213.01263.90
Depreciation 14.7618.4241.8144.6555.0668.0184.27104.40129.34160.25
Accounts Receivable -0.52-0.76-25.19-82.62-52.09-63.86-79.12-98.02-121.44
Inventories --62.89-0.2737.81-158.82-187.45-141.72-175.58-217.53-269.50
Accounts Payable --2.811.7531.4042.7451.4849.7461.6276.3594.59
Capital Expenditure -6.47-10.21-7.32-2.81-6.87-14.83-18.37-22.76-28.20-34.94
UFCF 42.98-19.4067.88155.83-24.73-22.8748.8360.5074.9692.86
WACC
PV UFCF -21.6943.9451.6460.6971.32
SUM PV UFCF 205.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.42
Free cash flow (t + 1) 94.72
Terminal Value 2,769.66
Present Value of Terminal Value 2,127.21

Intrinsic Value

Enterprise Value 2,333.12
Net Debt 839.57
Equity Value 1,493.55
Shares Outstanding 77.93
Equity Value Per Share 19.17