Discounted Cash Flow (DCF) Analysis Unlevered

Dream Unlimited Corp. (DRM.TO)

$28.14

-0.05 (-0.18%)
All numbers are in Millions, Currency in USD
Stock DCF: 69.77 | 28.14 | 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 356.96339.87580.43347.62325.92341.92358.71376.32394.80414.18
Revenue (%)
EBITDA 134.86259.67486.32226.76156.40212.80223.25234.21245.71257.77
EBITDA (%)
EBIT 130.71246.61476.87219.64149.96205.52215.61226.19237.30248.95
EBIT (%)
Depreciation 4.1513.069.467.126.437.297.648.028.418.83
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 25.4164.29388.52185.1252.56111.02116.48122.19128.19134.49
Total Cash (%)
Account Receivables 210.76189.31210.25263.10290.68215.98226.59237.71249.38261.62
Account Receivables (%)
Inventories 807.04873.32868.48762.54794.14749.28786.07824.66865.15907.63
Inventories (%)
Accounts Payable 30.0324.5533.9148.4242.0433.0334.6536.3638.1440.01
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 28.14
Beta 1.213
Diluted Shares Outstanding 44.75
Cost of Debt
Tax Rate 12.59
After-tax Cost of Debt 1.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.241
Total Debt 1,305.30
Total Equity 1,259.35
Total Capital 2,564.65
Debt Weighting 50.90
Equity Weighting 49.10
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 356.96339.87580.43347.62325.92341.92358.71376.32394.80414.18
EBITDA 134.86259.67486.32226.76156.40212.80223.25234.21245.71257.77
EBIT 130.71246.61476.87219.64149.96205.52215.61226.19237.30248.95
Tax Rate 31.09%10.56%24.56%19.43%12.59%19.65%19.65%19.65%19.65%19.65%
EBIAT 90.07220.57359.73176.97131.08165.14173.25181.76190.68200.04
Depreciation 4.1513.069.467.126.437.297.648.028.418.83
Accounts Receivable -21.45-20.94-52.85-27.5874.70-10.60-11.12-11.67-12.24
Inventories --66.284.84105.94-31.6044.86-36.79-38.59-40.49-42.48
Accounts Payable --5.489.3614.51-6.38-91.621.701.781.87
Capital Expenditure ----------
UFCF -----282.98135.12141.76148.72156.02
WACC
PV UFCF 268.53121.68121.14120.60120.06
SUM PV UFCF 752

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.38
Free cash flow (t + 1) 159.14
Terminal Value 4,708.29
Present Value of Terminal Value 3,623.03

Intrinsic Value

Enterprise Value 4,375.03
Net Debt 1,252.73
Equity Value 3,122.30
Shares Outstanding 44.75
Equity Value Per Share 69.77