Discounted Cash Flow (DCF) Analysis Unlevered
Franco-Nevada Corporation (FNV.TO)
$198.21
-3.05 (-1.52%)
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 | 653.20 | 844.10 | 1,020.20 | 1,300 | 1,315.70 | 1,574.63 | 1,884.53 | 2,255.41 | 2,699.28 | 3,230.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 441.40 | 676.70 | 580.90 | 1,157.70 | 1,120 | 1,193.14 | 1,427.96 | 1,708.98 | 2,045.32 | 2,447.84 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 1,193.14 | 1,427.96 | 1,708.98 | 2,045.32 | 2,447.84 |
| 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 | 69.70 | 132.10 | 534.20 | 539.30 | 1,196.50 | 664.83 | 795.68 | 952.27 | 1,139.68 | 1,363.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 0.10 | 0.13 | 0.12 | 159.50 | 135.70 | 71.25 | 85.28 | 102.06 | 122.15 | 146.18 |
| Account Receivables (%) | ||||||||||
| Inventories | - | 4.40 | 0.50 | 0.50 | 0.10 | 2.43 | 2.90 | 3.48 | 4.16 | 4.98 |
| Inventories (%) | ||||||||||
| Accounts Payable | 7.30 | 6.80 | 3.50 | 8.50 | 7 | 10.87 | 13.01 | 15.57 | 18.64 | 22.30 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -989.60 | -445.20 | -312.60 | -760.50 | -141.50 | -957.81 | -1,146.32 | -1,371.92 | -1,641.91 | -1,965.05 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 198.21 |
|---|---|
| Beta | 0.614 |
| Diluted Shares Outstanding | 190.55 |
| Cost of Debt | |
| Tax Rate | 15.96 |
| After-tax Cost of Debt | 4.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.590 |
| Total Debt | - |
| Total Equity | 37,768.37 |
| Total Capital | 37,768.37 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| 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 | 653.20 | 844.10 | 1,020.20 | 1,300 | 1,315.70 | 1,574.63 | 1,884.53 | 2,255.41 | 2,699.28 | 3,230.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 441.40 | 676.70 | 580.90 | 1,157.70 | 1,120 | 1,193.14 | 1,427.96 | 1,708.98 | 2,045.32 | 2,447.84 |
| EBIT | - | - | - | - | - | 1,193.14 | 1,427.96 | 1,708.98 | 2,045.32 | 2,447.84 |
| Tax Rate | 26.49% | 15.23% | 3.92% | 14.47% | 15.96% | 15.21% | 15.21% | 15.21% | 15.21% | 15.21% |
| EBIAT | - | - | - | - | - | 1,011.62 | 1,210.71 | 1,448.98 | 1,734.15 | 2,075.43 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | -0.02 | 0.01 | -159.38 | 23.80 | 64.45 | -14.02 | -16.78 | -20.09 | -24.04 |
| Inventories | - | - | 3.90 | -0 | 0.40 | -2.33 | -0.48 | -0.57 | -0.68 | -0.82 |
| Accounts Payable | - | -0.50 | -3.30 | 5 | -1.50 | 3.87 | 2.14 | 2.56 | 3.06 | 3.67 |
| Capital Expenditure | -989.60 | -445.20 | -312.60 | -760.50 | -141.50 | -957.81 | -1,146.32 | -1,371.92 | -1,641.91 | -1,965.05 |
| UFCF | - | - | - | - | - | 119.80 | 52.03 | 62.27 | 74.53 | 89.19 |
| WACC | ||||||||||
| PV UFCF | 112.39 | 45.80 | 51.42 | 57.74 | 64.83 | |||||
| SUM PV UFCF | 332.17 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.59 |
| Free cash flow (t + 1) | 90.98 |
| Terminal Value | 1,982.09 |
| Present Value of Terminal Value | 1,440.60 |
Intrinsic Value
| Enterprise Value | 1,772.76 |
|---|---|
| Net Debt | -1,196.50 |
| Equity Value | 2,969.26 |
| Shares Outstanding | 190.55 |
| Equity Value Per Share | 15.58 |