Discounted Cash Flow (DCF) Analysis Unlevered

EQB Inc. (EQB.TO)

$46.66

-0.77 (-1.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,624.76 | 46.66 | 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 349.39376.04497.06556.83642.91751.07877.421,025.041,197.481,398.94
Revenue (%)
EBITDA 629.79745.73950.26947.68947.791,332.931,557.171,819.142,125.192,482.72
EBITDA (%)
EBIT 620.91736.28933.26924.75915.121,306.381,526.151,782.912,082.862,433.27
EBIT (%)
Depreciation 8.889.451722.9332.6726.5531.0236.2342.3349.45
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 765.36636.16644.44819.731,443.541,336.341,561.161,823.802,130.632,489.07
Total Cash (%)
Account Receivables 12.8316.03506.21570.03729.13489.03571.30667.42779.70910.87
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 221.17257.27328.32303.86143.93412.68482.10563.21657.96768.65
Accounts Payable (%)
Capital Expenditure -9.76-20.43-20.13-27.79-38.57-34.95-40.83-47.69-55.72-65.09
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 46.66
Beta 1.714
Diluted Shares Outstanding 34.45
Cost of Debt
Tax Rate 25.07
After-tax Cost of Debt 3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.787
Total Debt 11,622.28
Total Equity 1,607.22
Total Capital 13,229.50
Debt Weighting 87.85
Equity Weighting 12.15
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 349.39376.04497.06556.83642.91751.07877.421,025.041,197.481,398.94
EBITDA 629.79745.73950.26947.68947.791,332.931,557.171,819.142,125.192,482.72
EBIT 620.91736.28933.26924.75915.121,306.381,526.151,782.912,082.862,433.27
Tax Rate 26.60%26.26%26.02%25.52%25.07%25.89%25.89%25.89%25.89%25.89%
EBIAT 455.77542.96690.44688.75685.70968.121,1311,321.271,543.551,803.23
Depreciation 8.889.451722.9332.6726.5531.0236.2342.3349.45
Accounts Receivable --3.21-490.17-63.83-159.10240.10-82.27-96.11-112.28-131.17
Inventories ----------
Accounts Payable -36.1071.05-24.46-159.93268.7469.4381.1194.75110.69
Capital Expenditure -9.76-20.43-20.13-27.79-38.57-34.95-40.83-47.69-55.72-65.09
UFCF 454.89564.89268.19595.61360.761,468.571,108.341,294.801,512.641,767.11
WACC
PV UFCF 1,406.681,016.891,137.901,273.301,424.83
SUM PV UFCF 6,259.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.40
Free cash flow (t + 1) 1,802.46
Terminal Value 75,102.36
Present Value of Terminal Value 60,555.15

Intrinsic Value

Enterprise Value 66,814.74
Net Debt 10,849.02
Equity Value 55,965.72
Shares Outstanding 34.45
Equity Value Per Share 1,624.76