Discounted Cash Flow (DCF) Analysis Unlevered

HEXO Corp. (HEXO)

$0.1797

-0.01 (-3.65%)
All numbers are in Millions, Currency in USD
Stock DCF: -85,051.89 | 0.1797 | 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 4.9347.5480.78123.77191.10688.492,480.438,936.2832,194.88115,988.96
Revenue (%)
EBITDA -20.16-81.30-474.22-66.17-1,042.71-2,431.35-8,759.45-31,557.81-113,693.78-409,606.20
EBITDA (%)
EBIT -21.82-84.94-542.47-83.04-1,092.35-2,659.09-9,579.93-34,513.75-124,343.20-447,973.03
EBIT (%)
Depreciation 1.663.6368.2516.8749.64227.74820.482,955.9410,649.4238,366.83
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 244.79139.50184.1767.4683.247,684.6427,685.5599,743.12359,345.981,294,620.94
Total Cash (%)
Account Receivables 14.8848.2936.1650.9750.41709.852,557.379,213.4833,193.52119,586.78
Account Receivables (%)
Inventories 12.7593.6472.50149.6182.32976.303,517.3412,671.9845,653.54164,476.67
Inventories (%)
Accounts Payable 8.9945.5832.4563.5672.58561.372,022.467,286.3426,250.5994,573.37
Accounts Payable (%)
Capital Expenditure -47.50-141.04-109.90-32.34-34.70-1,982.51-7,142.42-25,732.09-92,705.35-333,990.91
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 0.1,797
Beta 1.753
Diluted Shares Outstanding 127.30
Cost of Debt
Tax Rate 3.49
After-tax Cost of Debt 7.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.874
Total Debt 251.52
Total Equity 22.88
Total Capital 274.40
Debt Weighting 91.66
Equity Weighting 8.34
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 4.9347.5480.78123.77191.10688.492,480.438,936.2832,194.88115,988.96
EBITDA -20.16-81.30-474.22-66.17-1,042.71-2,431.35-8,759.45-31,557.81-113,693.78-409,606.20
EBIT -21.82-84.94-542.47-83.04-1,092.35-2,659.09-9,579.93-34,513.75-124,343.20-447,973.03
Tax Rate 0.00%4.50%1.09%0.34%3.49%1.88%1.88%1.88%1.88%1.88%
EBIAT -21.82-81.12-536.56-82.75-1,054.24-2,608.99-9,399.44-33,863.50-122,000.53-439,533.05
Depreciation 1.663.6368.2516.8749.64227.74820.482,955.9410,649.4238,366.83
Accounts Receivable --33.4112.13-14.810.56-659.44-1,847.53-6,656.11-23,980.05-86,393.26
Inventories --80.9021.14-77.1167.30-893.99-2,541.04-9,154.64-32,981.56-118,823.13
Accounts Payable -36.59-13.1331.119.02488.791,461.095,263.8818,964.2568,322.78
Capital Expenditure -47.50-141.04-109.90-32.34-34.70-1,982.51-7,142.42-25,732.09-92,705.35-333,990.91
UFCF -67.66-296.25-558.06-159.03-962.41-5,428.39-18,648.86-67,186.51-242,053.81-872,050.73
WACC
PV UFCF -5,023.97-15,973.60-53,260.81-177,587.68-592,131.13
SUM PV UFCF -843,977.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.05
Free cash flow (t + 1) -889,491.75
Terminal Value -14,702,342.97
Present Value of Terminal Value -9,983,037.29

Intrinsic Value

Enterprise Value -10,827,014.48
Net Debt 168.28
Equity Value -10,827,182.76
Shares Outstanding 127.30
Equity Value Per Share -85,051.89