Discounted Cash Flow (DCF) Analysis Unlevered

BRP Inc. (DOOO)

$76.48

+0.46 (+0.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.60 | 76.48 | overvalue

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 4,486.905,243.806,052.705,952.907,647.908,778.2510,075.6711,564.8413,274.1215,236.02
Revenue (%)
EBITDA 600.30570.208278491,411.401,240.061,423.341,633.711,875.172,152.32
EBITDA (%)
EBIT 451.10392.90592.90588.201,137.80914.701,049.891,205.061,383.171,587.60
EBIT (%)
Depreciation 149.20177.30234.10260.80273.60325.37373.46428.65492.01564.73
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 237.50112.8061.601,402.20339.40640.02734.61843.19967.811,110.85
Total Cash (%)
Account Receivables 350401.90417.50339.90497.30607.01696.73799.70917.901,053.56
Account Receivables (%)
Inventories 752.50946.201,166.301,087.301,691.301,658.461,903.572,184.922,507.852,878.51
Inventories (%)
Accounts Payable 560.20687.40754.80814.70965.301,130.151,297.181,488.911,708.961,961.55
Accounts Payable (%)
Capital Expenditure -230.40-298.60-330.70-279.90-697.70-528.76-606.91-696.61-799.57-917.75
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 76.48
Beta 2.711
Diluted Shares Outstanding 85.26
Cost of Debt
Tax Rate 26.27
After-tax Cost of Debt 2.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.308
Total Debt 2,187.40
Total Equity 6,520.65
Total Capital 8,708.05
Debt Weighting 25.12
Equity Weighting 74.88
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 4,486.905,243.806,052.705,952.907,647.908,778.2510,075.6711,564.8413,274.1215,236.02
EBITDA 600.30570.208278491,411.401,240.061,423.341,633.711,875.172,152.32
EBIT 451.10392.90592.90588.201,137.80914.701,049.891,205.061,383.171,587.60
Tax Rate 30.42%30.98%26.56%24.96%26.27%27.84%27.84%27.84%27.84%27.84%
EBIAT 313.86271.17435.44441.36838.95660.06757.62869.59998.111,145.64
Depreciation 149.20177.30234.10260.80273.60325.37373.46428.65492.01564.73
Accounts Receivable --51.90-15.6077.60-157.40-109.71-89.72-102.98-118.20-135.66
Inventories --193.70-220.1079-60432.84-245.12-281.35-322.93-370.66
Accounts Payable -127.2067.4059.90150.60164.85167.03191.72220.06252.58
Capital Expenditure -230.40-298.60-330.70-279.90-697.70-528.76-606.91-696.61-799.57-917.75
UFCF 232.6631.47170.54638.76-195.95544.65356.36409.03469.49538.88
WACC
PV UFCF 483.10280.37285.45290.61295.87
SUM PV UFCF 1,635.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.74
Free cash flow (t + 1) 549.65
Terminal Value 5,117.81
Present Value of Terminal Value 2,809.92

Intrinsic Value

Enterprise Value 4,445.32
Net Debt 1,921.60
Equity Value 2,523.72
Shares Outstanding 85.26
Equity Value Per Share 29.60