Discounted Cash Flow (DCF) Analysis Unlevered
DIRTT Environmental Solutions Ltd. (DRT.TO)
$0.66
-0.02 (-2.94%)
All numbers are in Millions, Currency in USD
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 | 261.87 | 247.74 | 171.51 | 147.59 | 172.16 | 157.76 | 144.56 | 132.46 | 121.38 | 111.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 18.09 | 9 | 2.82 | -36.23 | -34.66 | -10.25 | -9.40 | -8.61 | -7.89 | -7.23 |
| EBITDA (%) | ||||||||||
| EBIT | 3.80 | -3.25 | -8.89 | -50.74 | -49.78 | -21.56 | -19.76 | -18.10 | -16.59 | -15.20 |
| EBIT (%) | ||||||||||
| Depreciation | 14.30 | 12.24 | 11.71 | 14.51 | 15.12 | 11.31 | 10.36 | 9.50 | 8.70 | 7.97 |
| 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 | 53.50 | 47.17 | 45.85 | 60.31 | 10.82 | 35.76 | 32.77 | 30.03 | 27.52 | 25.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 43.94 | 24.94 | 18.95 | 17.54 | 21.81 | 19.70 | 18.06 | 16.55 | 15.16 | 13.89 |
| Account Receivables (%) | ||||||||||
| Inventories | 18.68 | 17.57 | 15.98 | 18.46 | 22.25 | 15.45 | 14.16 | 12.97 | 11.89 | 10.89 |
| Inventories (%) | ||||||||||
| Accounts Payable | 19.01 | 7.62 | 4.92 | 7.82 | 5.56 | 6.86 | 6.28 | 5.76 | 5.28 | 4.83 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -14.01 | -16.15 | -20.11 | -14.12 | -4.07 | -11.21 | -10.27 | -9.41 | -8.63 | -7.90 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 0.66 |
|---|---|
| Beta | 1.388 |
| Diluted Shares Outstanding | 87.92 |
| Cost of Debt | |
| Tax Rate | -0.04 |
| After-tax Cost of Debt | 5.22% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.959 |
| Total Debt | 98.86 |
| Total Equity | 58.03 |
| Total Capital | 156.89 |
| Debt Weighting | 63.01 |
| Equity Weighting | 36.99 |
| 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 | 261.87 | 247.74 | 171.51 | 147.59 | 172.16 | 157.76 | 144.56 | 132.46 | 121.38 | 111.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 18.09 | 9 | 2.82 | -36.23 | -34.66 | -10.25 | -9.40 | -8.61 | -7.89 | -7.23 |
| EBIT | 3.80 | -3.25 | -8.89 | -50.74 | -49.78 | -21.56 | -19.76 | -18.10 | -16.59 | -15.20 |
| Tax Rate | 33.62% | -30.17% | -22.88% | 0.38% | -0.04% | -3.82% | -3.82% | -3.82% | -3.82% | -3.82% |
| EBIAT | 2.52 | -4.23 | -10.92 | -50.55 | -49.80 | -22.39 | -20.51 | -18.80 | -17.22 | -15.78 |
| Depreciation | 14.30 | 12.24 | 11.71 | 14.51 | 15.12 | 11.31 | 10.36 | 9.50 | 8.70 | 7.97 |
| Accounts Receivable | - | 19 | 5.99 | 1.41 | -4.27 | 2.11 | 1.65 | 1.51 | 1.38 | 1.27 |
| Inventories | - | 1.11 | 1.59 | -2.48 | -3.79 | 6.80 | 1.29 | 1.18 | 1.09 | 0.99 |
| Accounts Payable | - | -11.39 | -2.70 | 2.90 | -2.26 | 1.30 | -0.57 | -0.53 | -0.48 | -0.44 |
| Capital Expenditure | -14.01 | -16.15 | -20.11 | -14.12 | -4.07 | -11.21 | -10.27 | -9.41 | -8.63 | -7.90 |
| UFCF | 2.81 | 0.58 | -14.45 | -48.32 | -49.08 | -12.08 | -18.05 | -16.54 | -15.16 | -13.89 |
| WACC | ||||||||||
| PV UFCF | -11.30 | -15.78 | -13.52 | -11.58 | -9.92 | |||||
| SUM PV UFCF | -62.09 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.97 |
| Free cash flow (t + 1) | -14.17 |
| Terminal Value | -285.10 |
| Present Value of Terminal Value | -203.55 |
Intrinsic Value
| Enterprise Value | -265.64 |
|---|---|
| Net Debt | 88.04 |
| Equity Value | -353.68 |
| Shares Outstanding | 87.92 |
| Equity Value Per Share | -4.02 |