Discounted Cash Flow (DCF) Analysis Unlevered

Franco-Nevada Corporation (FNV.TO)

$142.54

+0.45 (+0.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 59.75 | 142.54 | overvalue

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 653.20844.101,020.201,3001,315.701,574.631,884.532,255.412,699.283,230.51
Revenue (%)
EBITDA 515.50674833.501,091.301,115.701,288.721,542.341,845.882,209.162,643.93
EBITDA (%)
EBIT 192.20410.80330858.20829.50754.25902.691,080.341,292.961,547.42
EBIT (%)
Depreciation 323.30263.20503.50233.10286.20534.47639.66765.54916.201,096.52
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 69.70132.10534.20539.301,196.50664.83795.68952.271,139.681,363.97
Total Cash (%)
Account Receivables 75.5097.8093.40159.50135.70172.84206.86247.57296.29354.60
Account Receivables (%)
Inventories 75.404.400.500.500.1038.2945.8354.8565.6478.56
Inventories (%)
Accounts Payable 7.306.803.508.50710.8713.0115.5718.6422.30
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 $ 142.54
Beta 0.582
Diluted Shares Outstanding 191.90
Cost of Debt
Tax Rate 15.96
After-tax Cost of Debt 4.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.022
Total Debt -
Total Equity 27,353.43
Total Capital 27,353.43
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 653.20844.101,020.201,3001,315.701,574.631,884.532,255.412,699.283,230.51
EBITDA 515.50674833.501,091.301,115.701,288.721,542.341,845.882,209.162,643.93
EBIT 192.20410.80330858.20829.50754.25902.691,080.341,292.961,547.42
Tax Rate 26.49%15.23%3.92%14.47%15.96%15.21%15.21%15.21%15.21%15.21%
EBIAT 141.28348.25317.07734.04697.07639.50765.36915.981,096.251,311.99
Depreciation 323.30263.20503.50233.10286.20534.47639.66765.54916.201,096.52
Accounts Receivable --22.304.40-66.1023.80-37.14-34.02-40.71-48.72-58.31
Inventories -713.90-00.40-38.19-7.54-9.02-10.79-12.92
Accounts Payable --0.50-3.305-1.503.872.142.563.063.67
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 -525.02214.45512.97145.54864.47144.69219.28262.44314.09375.90
WACC
PV UFCF 135.20191.46214.11239.44267.76
SUM PV UFCF 1,047.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.02
Free cash flow (t + 1) 390.94
Terminal Value 12,944.94
Present Value of Terminal Value 9,220.94

Intrinsic Value

Enterprise Value 10,268.91
Net Debt -1,196.50
Equity Value 11,465.41
Shares Outstanding 191.90
Equity Value Per Share 59.75