Discounted Cash Flow (DCF) Analysis Unlevered

Element Fleet Management Corp. (EFN.TO)

$19.05

+0.09 (+0.47%)

All numbers are in Millions, Currency in USD

Stock DCF: 31.80 | 19.05 | 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	1,735.55	1,768.27	2,018.07	1,770.32	1,662.49	1,652.69	1,642.96	1,633.28	1,623.66	1,614.10
Revenue (%)
EBITDA	626.20	163.37	666.34	848.56	997.36	615.67	612.04	608.44	604.85	601.29
EBITDA (%)
EBIT	187.87	-306.45	105.22	339.31	461.26	150.79	149.90	149.02	148.14	147.27
EBIT (%)
Depreciation	438.33	469.81	561.11	509.24	536.11	464.88	462.14	459.42	456.71	454.02
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	76.64	22	24.22	8.79	45.27	33.32	33.12	32.93	32.73	32.54
Total Cash (%)
Account Receivables	13,103.60	13,515.84	12,206.65	9,788.57	7,641.15	10,368.28	10,307.21	10,246.51	10,186.16	10,126.16
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	582.09	706.72	924.94	1,062.61	745.47	741.08	736.71	732.37	728.06	723.77
Accounts Payable (%)
Capital Expenditure	-57.71	-46.18	-48.52	-100.38	-86.27	-63.46	-63.09	-62.72	-62.35	-61.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 19.05
Beta	0.948
Diluted Shares Outstanding	439.49
Cost of Debt
Tax Rate	22.21
After-tax Cost of Debt	0.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.165
Total Debt	8,204.16
Total Equity	8,372.25
Total Capital	16,576.41
Debt Weighting	49.49
Equity Weighting	50.51
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	1,735.55	1,768.27	2,018.07	1,770.32	1,662.49	1,652.69	1,642.96	1,633.28	1,623.66	1,614.10
EBITDA	626.20	163.37	666.34	848.56	997.36	615.67	612.04	608.44	604.85	601.29
EBIT	187.87	-306.45	105.22	339.31	461.26	150.79	149.90	149.02	148.14	147.27
Tax Rate	11.49%	37.87%	-6.15%	13.80%	22.21%	15.85%	15.85%	15.85%	15.85%	15.85%
EBIAT	166.28	-190.38	111.70	292.49	358.79	126.90	126.15	125.41	124.67	123.93
Depreciation	438.33	469.81	561.11	509.24	536.11	464.88	462.14	459.42	456.71	454.02
Accounts Receivable	-	-412.24	1,309.19	2,418.08	2,147.43	-2,727.13	61.07	60.71	60.35	59.99
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	124.63	218.22	137.67	-317.14	-4.39	-4.36	-4.34	-4.31	-4.29
Capital Expenditure	-57.71	-46.18	-48.52	-100.38	-86.27	-63.46	-63.09	-62.72	-62.35	-61.98
UFCF	546.90	-54.35	2,151.70	3,257.11	2,638.91	-2,203.21	581.90	578.48	575.07	571.68
WACC
PV UFCF						-2,115.62	536.56	512.19	488.93	466.73
SUM PV UFCF										-111.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.14
Free cash flow (t + 1)	583.11
Terminal Value	27,248.36
Present Value of Terminal Value	22,246.03

Intrinsic Value

Enterprise Value	22,134.81
Net Debt	8,158.89
Equity Value	13,975.93
Shares Outstanding	439.49
Equity Value Per Share	31.80