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
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 | 356.96 | 339.87 | 580.43 | 347.62 | 325.92 | 341.92 | 358.71 | 376.32 | 394.80 | 414.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 134.86 | 259.67 | 486.32 | 226.76 | 156.40 | 212.80 | 223.25 | 234.21 | 245.71 | 257.77 |
| EBITDA (%) | ||||||||||
| EBIT | 130.71 | 246.61 | 476.87 | 219.64 | 149.96 | 205.52 | 215.61 | 226.19 | 237.30 | 248.95 |
| EBIT (%) | ||||||||||
| Depreciation | 4.15 | 13.06 | 9.46 | 7.12 | 6.43 | 7.29 | 7.64 | 8.02 | 8.41 | 8.83 |
| 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 | 25.41 | 64.29 | 388.52 | 185.12 | 52.56 | 111.02 | 116.48 | 122.19 | 128.19 | 134.49 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 210.76 | 189.31 | 210.25 | 263.10 | 290.68 | 215.98 | 226.59 | 237.71 | 249.38 | 261.62 |
| Account Receivables (%) | ||||||||||
| Inventories | 807.04 | 873.32 | 868.48 | 762.54 | 794.14 | 749.28 | 786.07 | 824.66 | 865.15 | 907.63 |
| Inventories (%) | ||||||||||
| Accounts Payable | 30.03 | 24.55 | 33.91 | 48.42 | 42.04 | 33.03 | 34.65 | 36.36 | 38.14 | 40.01 |
| 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 | 356.96 | 339.87 | 580.43 | 347.62 | 325.92 | 341.92 | 358.71 | 376.32 | 394.80 | 414.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 134.86 | 259.67 | 486.32 | 226.76 | 156.40 | 212.80 | 223.25 | 234.21 | 245.71 | 257.77 |
| EBIT | 130.71 | 246.61 | 476.87 | 219.64 | 149.96 | 205.52 | 215.61 | 226.19 | 237.30 | 248.95 |
| Tax Rate | 31.09% | 10.56% | 24.56% | 19.43% | 12.59% | 19.65% | 19.65% | 19.65% | 19.65% | 19.65% |
| EBIAT | 90.07 | 220.57 | 359.73 | 176.97 | 131.08 | 165.14 | 173.25 | 181.76 | 190.68 | 200.04 |
| Depreciation | 4.15 | 13.06 | 9.46 | 7.12 | 6.43 | 7.29 | 7.64 | 8.02 | 8.41 | 8.83 |
| Accounts Receivable | - | 21.45 | -20.94 | -52.85 | -27.58 | 74.70 | -10.60 | -11.12 | -11.67 | -12.24 |
| Inventories | - | -66.28 | 4.84 | 105.94 | -31.60 | 44.86 | -36.79 | -38.59 | -40.49 | -42.48 |
| Accounts Payable | - | -5.48 | 9.36 | 14.51 | -6.38 | -9 | 1.62 | 1.70 | 1.78 | 1.87 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 282.98 | 135.12 | 141.76 | 148.72 | 156.02 |
| WACC | ||||||||||
| PV UFCF | 268.53 | 121.68 | 121.14 | 120.60 | 120.06 | |||||
| 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 |