Discounted Cash Flow (DCF) Analysis Unlevered

Knight Therapeutics Inc. (GUD.TO)

$4.905

-0.01 (-0.10%)

All numbers are in Millions, Currency in USD

Stock DCF: 8,997.74 | 4.905 | 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	8.63	12.50	47.46	199.52	243.48	649.41	1,732.10	4,619.86	12,322.12	32,865.63
Revenue (%)
EBITDA	49.13	52.33	24.55	77.86	58.22	1,431.70	3,818.63	10,185.06	27,165.65	72,456.37
EBITDA (%)
EBIT	47.50	50.40	20.28	45.79	10.31	1,328.99	3,544.69	9,454.43	25,216.89	67,258.63
EBIT (%)
Depreciation	1.63	1.93	4.27	32.07	47.91	102.70	273.93	730.64	1,948.76	5,197.74
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	787.88	703.82	430.62	411.34	162.99	20,698.24	55,206.44	147,246.92	392,737.76	1,047,512.23
Total Cash (%)
Account Receivables	2	3	103	63	55	413.48	1,102.83	2,941.46	7,845.49	20,925.53
Account Receivables (%)
Inventories	1.22	1.14	70.87	56.50	72.40	299.56	798.99	2,131.07	5,684	15,160.40
Inventories (%)
Accounts Payable	0.54	0.75	72.83	44.51	65.31	279.07	744.35	1,985.33	5,295.29	14,123.63
Accounts Payable (%)
Capital Expenditure	-0.13	-3.87	-2.95	-20.67	-224.18	-183.24	-488.73	-1,303.55	-3,476.83	-9,273.43
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 4.905
Beta	0.523
Diluted Shares Outstanding	124.52
Cost of Debt
Tax Rate	-134.30
After-tax Cost of Debt	8.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.261
Total Debt	40.96
Total Equity	610.78
Total Capital	651.74
Debt Weighting	6.28
Equity Weighting	93.72
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	8.63	12.50	47.46	199.52	243.48	649.41	1,732.10	4,619.86	12,322.12	32,865.63
EBITDA	49.13	52.33	24.55	77.86	58.22	1,431.70	3,818.63	10,185.06	27,165.65	72,456.37
EBIT	47.50	50.40	20.28	45.79	10.31	1,328.99	3,544.69	9,454.43	25,216.89	67,258.63
Tax Rate	18.66%	18.28%	36.28%	-31.11%	-134.30%	-18.44%	-18.44%	-18.44%	-18.44%	-18.44%
EBIAT	38.64	41.19	12.92	60.04	24.15	1,574.07	4,198.37	11,197.90	29,867.11	79,661.70
Depreciation	1.63	1.93	4.27	32.07	47.91	102.70	273.93	730.64	1,948.76	5,197.74
Accounts Receivable	-	-1	-100	40	8	-358.48	-689.35	-1,838.64	-4,904.02	-13,080.04
Inventories	-	0.09	-69.73	14.37	-15.89	-227.16	-499.43	-1,332.08	-3,552.93	-9,476.40
Accounts Payable	-	0.21	72.08	-28.32	20.80	213.77	465.28	1,240.98	3,309.96	8,828.34
Capital Expenditure	-0.13	-3.87	-2.95	-20.67	-224.18	-183.24	-488.73	-1,303.55	-3,476.83	-9,273.43
UFCF	40.14	38.55	-83.41	97.49	-139.21	1,121.66	3,260.06	8,695.26	23,192.04	61,857.92
WACC
PV UFCF						1,054	2,878.59	7,214.61	18,081.97	45,318.87
SUM PV UFCF										74,548.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.42
Free cash flow (t + 1)	63,095.08
Terminal Value	1,427,490.43
Present Value of Terminal Value	1,045,819.98

Intrinsic Value

Enterprise Value	1,120,368.01
Net Debt	-45.01
Equity Value	1,120,413.01
Shares Outstanding	124.52
Equity Value Per Share	8,997.74