Discounted Cash Flow (DCF) Analysis Unlevered
Houston American Energy Corp. (HUSA)
$3.78
+0.03 (+0.80%)
All numbers are in Millions, Currency in USD
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 | 0.63 | 2.36 | 1 | 0.55 | 1.33 | 2.37 | 4.22 | 7.51 | 13.38 | 23.83 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -1.70 | 0.11 | -1.82 | -3.55 | -0.70 | -5.42 | -9.65 | -17.19 | -30.61 | -54.52 |
| EBITDA (%) | ||||||||||
| EBIT | -1.70 | 0.11 | -2.33 | -4.01 | -1.02 | -6.66 | -11.87 | -21.13 | -37.64 | -67.03 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | 0.52 | 0.45 | 0.32 | 1.24 | 2.21 | 3.94 | 7.02 | 12.51 |
| 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 | 0.39 | 0.76 | 0.10 | 1.24 | 4.89 | 3.30 | 5.88 | 10.47 | 18.65 | 33.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 0.35 | 0.14 | 0.08 | 0.10 | 0.21 | 0.49 | 0.86 | 1.54 | 2.74 | 4.88 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 0.13 | 0.06 | 0.27 | 0.12 | 0.07 | 0.36 | 0.65 | 1.15 | 2.06 | 3.66 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -4.41 | -0.51 | -0.69 | -1.51 | -0.04 | -5.06 | -9.01 | -16.04 | -28.56 | -50.87 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 3.78 |
|---|---|
| Beta | 0.811 |
| Diluted Shares Outstanding | 9.67 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 0.11% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.347 |
| Total Debt | 0.27 |
| Total Equity | 36.56 |
| Total Capital | 36.83 |
| Debt Weighting | 0.73 |
| Equity Weighting | 99.27 |
| 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 | 0.63 | 2.36 | 1 | 0.55 | 1.33 | 2.37 | 4.22 | 7.51 | 13.38 | 23.83 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -1.70 | 0.11 | -1.82 | -3.55 | -0.70 | -5.42 | -9.65 | -17.19 | -30.61 | -54.52 |
| EBIT | -1.70 | 0.11 | -2.33 | -4.01 | -1.02 | -6.66 | -11.87 | -21.13 | -37.64 | -67.03 |
| Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| EBIAT | -1.70 | 0.11 | -2.33 | -4.01 | -1.02 | -6.66 | -11.87 | -21.13 | -37.64 | -67.03 |
| Depreciation | - | - | 0.52 | 0.45 | 0.32 | 1.24 | 2.21 | 3.94 | 7.02 | 12.51 |
| Accounts Receivable | - | 0.21 | 0.06 | -0.02 | -0.12 | -0.27 | -0.38 | -0.67 | -1.20 | -2.14 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -0.07 | 0.21 | -0.15 | -0.05 | 0.29 | 0.28 | 0.51 | 0.90 | 1.61 |
| Capital Expenditure | -4.41 | -0.51 | -0.69 | -1.51 | -0.04 | -5.06 | -9.01 | -16.04 | -28.56 | -50.87 |
| UFCF | -6.12 | -0.25 | -2.24 | -5.23 | -0.91 | -10.45 | -18.75 | -33.40 | -59.48 | -105.92 |
| WACC | ||||||||||
| PV UFCF | -9.74 | -16.29 | -27.04 | -44.89 | -74.51 | |||||
| SUM PV UFCF | -172.47 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.29 |
| Free cash flow (t + 1) | -108.04 |
| Terminal Value | -2,042.36 |
| Present Value of Terminal Value | -1,436.60 |
Intrinsic Value
| Enterprise Value | -1,609.07 |
|---|---|
| Net Debt | -4.63 |
| Equity Value | -1,604.44 |
| Shares Outstanding | 9.67 |
| Equity Value Per Share | -165.89 |