Discounted Cash Flow (DCF) Analysis Unlevered
Fairfax India Holdings Corporation (FIH-U.TO)
$13.05
-0.02 (-0.15%)
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 | 103.71 | 603.47 | -29.20 | 542.26 | 209.97 | -651.52 | 2,021.65 | -6,273.12 | 19,465.31 | -60,400.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 128.53 | 625.86 | -14.68 | 558.85 | 220.93 | -633.53 | 1,965.83 | -6,099.90 | 18,927.84 | -58,732.60 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | -633.53 | 1,965.83 | -6,099.90 | 18,927.84 | -58,732.60 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| 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 | 21.24 | 48.71 | 22.06 | 30.38 | 147.45 | -37.59 | 116.63 | -361.91 | 1,122.99 | -3,484.61 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 7.04 | 3.45 | 1.91 | 5.34 | 5.60 | -5.82 | 18.06 | -56.04 | 173.88 | -539.54 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 1.03 | 1.17 | 0.93 | 9.48 | 9.75 | -5.73 | 17.78 | -55.16 | 171.16 | -531.11 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 13.05 |
|---|---|
| Beta | 1.399 |
| Diluted Shares Outstanding | 153.49 |
| Cost of Debt | |
| Tax Rate | 2.31 |
| After-tax Cost of Debt | 4.91% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.240 |
| Total Debt | 497.31 |
| Total Equity | 2,002.98 |
| Total Capital | 2,500.29 |
| Debt Weighting | 19.89 |
| Equity Weighting | 80.11 |
| 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 | 103.71 | 603.47 | -29.20 | 542.26 | 209.97 | -651.52 | 2,021.65 | -6,273.12 | 19,465.31 | -60,400.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 128.53 | 625.86 | -14.68 | 558.85 | 220.93 | -633.53 | 1,965.83 | -6,099.90 | 18,927.84 | -58,732.60 |
| EBIT | - | - | - | - | - | -633.53 | 1,965.83 | -6,099.90 | 18,927.84 | -58,732.60 |
| Tax Rate | 3.21% | 12.87% | -6.40% | 7.31% | 2.31% | 3.86% | 3.86% | 3.86% | 3.86% | 3.86% |
| EBIAT | - | - | - | - | - | -609.06 | 1,889.91 | -5,864.34 | 18,196.89 | -56,464.46 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | 3.59 | 1.54 | -3.43 | -0.26 | 11.42 | -23.88 | 74.10 | -229.92 | 713.42 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 0.14 | -0.24 | 8.55 | 0.28 | -15.48 | 23.51 | -72.94 | 226.32 | -702.27 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | -613.13 | 1,889.54 | -5,863.18 | 18,193.29 | -56,453.31 |
| WACC | ||||||||||
| PV UFCF | -561.58 | 1,585.14 | -4,505.09 | 12,803.80 | -36,389.32 | |||||
| SUM PV UFCF | -27,067.04 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.18 |
| Free cash flow (t + 1) | -57,582.38 |
| Terminal Value | -801,982.95 |
| Present Value of Terminal Value | -516,951.36 |
Intrinsic Value
| Enterprise Value | -544,018.41 |
|---|---|
| Net Debt | 349.86 |
| Equity Value | -544,368.27 |
| Shares Outstanding | 153.49 |
| Equity Value Per Share | -3,546.72 |