Discounted Cash Flow (DCF) Analysis Unlevered

HEXO Corp. (HEXO)

$0.1799

+0.01 (+4.05%)
All numbers are in Millions, Currency in USD
Stock DCF: -63,452.80 | 0.1799 | overvalue

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 4.104.9347.5480.78123.77435.391,531.625,387.9218,953.5866,674.73
Revenue (%)
EBITDA -11.30-20.16-81.30-474.22-66.17-1,302.69-4,582.58-16,120.56-56,708.75-199,489.47
EBITDA (%)
EBIT -11.89-21.82-84.93-542.47-83.04-1,436.66-5,053.88-17,778.48-62,540.95-220,005.89
EBIT (%)
Depreciation 0.591.663.6368.2516.87133.97471.291,657.915,832.1920,516.42
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 41.32244.79139.50184.1767.465,700.1020,051.7770,537.91248,137.52872,895.61
Total Cash (%)
Account Receivables 0.8514.8848.2936.1650.97443.931,561.665,493.5819,325.2767,982.23
Account Receivables (%)
Inventories 5.1912.7593.6472.50149.61690.282,428.278,542.1430,049.45105,707.65
Inventories (%)
Accounts Payable 1.678.9945.5832.4563.56357.481,257.544,423.7515,561.8254,743.21
Accounts Payable (%)
Capital Expenditure -3.47-47.50-141.04-109.90-32.34-1,311.61-4,613.98-16,231-57,097.23-200,856.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 0.1,799
Beta 1.923
Diluted Shares Outstanding 127.30
Cost of Debt
Tax Rate 0.34
After-tax Cost of Debt 6.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.733
Total Debt 498.24
Total Equity 22.90
Total Capital 521.14
Debt Weighting 95.61
Equity Weighting 4.39
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 4.104.9347.5480.78123.77435.391,531.625,387.9218,953.5866,674.73
EBITDA -11.30-20.16-81.30-474.22-66.17-1,302.69-4,582.58-16,120.56-56,708.75-199,489.47
EBIT -11.89-21.82-84.93-542.47-83.04-1,436.66-5,053.88-17,778.48-62,540.95-220,005.89
Tax Rate 0.00%0.00%4.50%1.09%0.34%1.19%1.19%1.19%1.19%1.19%
EBIAT -11.89-21.82-81.12-536.56-82.75-1,419.62-4,993.93-17,567.58-61,799.07-217,396.12
Depreciation 0.591.663.6368.2516.87133.97471.291,657.915,832.1920,516.42
Accounts Receivable --14.03-33.4112.14-14.81-392.96-1,117.73-3,931.93-13,831.69-48,656.96
Inventories --7.55-80.9021.14-77.11-540.67-1,737.99-6,113.87-21,507.31-75,658.20
Accounts Payable -7.3236.59-13.1331.11293.92900.063,166.2111,138.0739,181.39
Capital Expenditure -3.47-47.50-141.04-109.90-32.34-1,311.61-4,613.98-16,231-57,097.23-200,856.04
UFCF -14.77-81.93-296.25-558.06-159.03-3,236.97-11,092.26-39,020.25-137,265.03-482,869.51
WACC
PV UFCF -3,033.71-9,742.97-32,121.57-105,901.53-349,146.50
SUM PV UFCF -499,946.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.70
Free cash flow (t + 1) -492,526.90
Terminal Value -10,479,295.81
Present Value of Terminal Value -7,577,221.85

Intrinsic Value

Enterprise Value -8,077,168.13
Net Debt 430.78
Equity Value -8,077,598.90
Shares Outstanding 127.30
Equity Value Per Share -63,452.80