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 1,735.551,768.272,018.071,770.321,662.491,652.691,642.961,633.281,623.661,614.10
Revenue (%)
EBITDA 626.20163.37666.34848.56997.36615.67612.04608.44604.85601.29
EBITDA (%)
EBIT 187.87-306.45105.22339.31461.26150.79149.90149.02148.14147.27
EBIT (%)
Depreciation 438.33469.81561.11509.24536.11464.88462.14459.42456.71454.02
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 76.642224.228.7945.2733.3233.1232.9332.7332.54
Total Cash (%)
Account Receivables 13,103.6013,515.8412,206.659,788.577,641.1510,368.2810,307.2110,246.5110,186.1610,126.16
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 582.09706.72924.941,062.61745.47741.08736.71732.37728.06723.77
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 1,735.551,768.272,018.071,770.321,662.491,652.691,642.961,633.281,623.661,614.10
EBITDA 626.20163.37666.34848.56997.36615.67612.04608.44604.85601.29
EBIT 187.87-306.45105.22339.31461.26150.79149.90149.02148.14147.27
Tax Rate 11.49%37.87%-6.15%13.80%22.21%15.85%15.85%15.85%15.85%15.85%
EBIAT 166.28-190.38111.70292.49358.79126.90126.15125.41124.67123.93
Depreciation 438.33469.81561.11509.24536.11464.88462.14459.42456.71454.02
Accounts Receivable --412.241,309.192,418.082,147.43-2,727.1361.0760.7160.3559.99
Inventories ----------
Accounts Payable -124.63218.22137.67-317.14-4.39-4.36-4.34-4.31-4.29
Capital Expenditure -57.71-46.18-48.52-100.38-86.27-63.46-63.09-62.72-62.35-61.98
UFCF 546.90-54.352,151.703,257.112,638.91-2,203.21581.90578.48575.07571.68
WACC
PV UFCF -2,115.62536.56512.19488.93466.73
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