Discounted Cash Flow (DCF) Analysis Unlevered

IBI Group Inc. (IBG.TO)

$19.48

-0.01 (-0.05%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.14 | 19.48 | 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	361.41	454.61	460.46	505.08	556.51	621.83	694.81	776.36	867.49	969.31
Revenue (%)
EBITDA	31.77	41.71	52.41	57.16	61.77	64.38	71.93	80.38	89.81	100.35
EBITDA (%)
EBIT	27.31	35.70	32.71	35.76	39.95	45.73	51.10	57.10	63.80	71.29
EBIT (%)
Depreciation	4.46	6.01	19.70	21.41	21.82	18.65	20.83	23.28	26.01	29.06
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	9.83	9.46	15.63	32.73	21.47	23.05	25.76	28.78	32.16	35.93
Total Cash (%)
Account Receivables	113.54	183.59	174.86	200.47	204.34	231.55	258.73	289.10	323.03	360.94
Account Receivables (%)
Inventories	79.04	99.42	100.70	110.46	121.71	135.99	151.96	169.79	189.72	211.99
Inventories (%)
Accounts Payable	48.78	39.64	45.18	57.98	53.71	66.11	73.87	82.54	92.23	103.06
Accounts Payable (%)
Capital Expenditure	-5.27	-8.39	-11.03	-6.41	-5.49	-9.89	-11.05	-12.35	-13.80	-15.42
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 19.48
Beta	1.157
Diluted Shares Outstanding	38.46
Cost of Debt
Tax Rate	41.52
After-tax Cost of Debt	4.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.077
Total Debt	113.12
Total Equity	749.18
Total Capital	862.30
Debt Weighting	13.12
Equity Weighting	86.88
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	361.41	454.61	460.46	505.08	556.51	621.83	694.81	776.36	867.49	969.31
EBITDA	31.77	41.71	52.41	57.16	61.77	64.38	71.93	80.38	89.81	100.35
EBIT	27.31	35.70	32.71	35.76	39.95	45.73	51.10	57.10	63.80	71.29
Tax Rate	49.89%	39.49%	38.34%	37.42%	41.52%	41.33%	41.33%	41.33%	41.33%	41.33%
EBIAT	13.68	21.60	20.17	22.38	23.37	26.83	29.98	33.50	37.43	41.82
Depreciation	4.46	6.01	19.70	21.41	21.82	18.65	20.83	23.28	26.01	29.06
Accounts Receivable	-	-70.05	8.72	-25.61	-3.88	-27.21	-27.18	-30.37	-33.93	-37.91
Inventories	-	-20.38	-1.28	-9.76	-11.25	-14.29	-15.96	-17.84	-19.93	-22.27
Accounts Payable	-	-9.14	5.54	12.80	-4.27	12.40	7.76	8.67	9.69	10.83
Capital Expenditure	-5.27	-8.39	-11.03	-6.42	-5.49	-9.89	-11.05	-12.35	-13.80	-15.42
UFCF	12.88	-80.35	41.83	14.80	20.31	6.49	4.38	4.89	5.47	6.11
WACC
PV UFCF						5.99	3.73	3.84	3.96	4.08
SUM PV UFCF										21.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.44
Free cash flow (t + 1)	6.23
Terminal Value	96.79
Present Value of Terminal Value	64.55

Intrinsic Value

Enterprise Value	86.13
Net Debt	91.64
Equity Value	-5.51
Shares Outstanding	38.46
Equity Value Per Share	-0.14