Discounted Cash Flow (DCF) Analysis Unlevered

Largo Inc. (LGO.TO)

$8.33

+0.13 (+1.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.05 | 8.33 | 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 133.38382.82107.18119.99198.28293.56434.63643.48952.701,410.50
Revenue (%)
EBITDA 48.55284.947.2726.3755.2598.32145.56215.51319.07472.39
EBITDA (%)
EBIT 22.12262.15-16.998.8632.7454.6780.94119.83177.41262.66
EBIT (%)
Depreciation 26.4222.7924.2717.5122.5143.6564.6295.68141.66209.73
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 43.52151.38127.1479.1583.79175.55259.91384.81569.73843.50
Total Cash (%)
Account Receivables 11.8845.936.1419.1023.6831.9947.3770.13103.83153.72
Account Receivables (%)
Inventories 10.9410.5521.1835.3445.3248.7572.18106.86158.21234.23
Inventories (%)
Accounts Payable 16.6517.7074.9112.2914.0561.2590.68134.25198.77294.28
Accounts Payable (%)
Capital Expenditure -15.43-13.94-38.57-18.11-27.40-47.03-69.63-103.10-152.64-225.99
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.33
Beta 1.710
Diluted Shares Outstanding 65.05
Cost of Debt
Tax Rate 28.93
After-tax Cost of Debt 3.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.855
Total Debt 17.55
Total Equity 541.82
Total Capital 559.37
Debt Weighting 3.14
Equity Weighting 96.86
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 133.38382.82107.18119.99198.28293.56434.63643.48952.701,410.50
EBITDA 48.55284.947.2726.3755.2598.32145.56215.51319.07472.39
EBIT 22.12262.15-16.998.8632.7454.6780.94119.83177.41262.66
Tax Rate -15.26%2.08%-15.85%12.46%28.93%2.47%2.47%2.47%2.47%2.47%
EBIAT 25.50256.71-19.687.7623.2753.3278.94116.87173.03256.17
Depreciation 26.4222.7924.2717.5122.5143.6564.6295.68141.66209.73
Accounts Receivable --34.0539.79-12.96-4.59-8.31-15.37-22.76-33.70-49.89
Inventories -0.39-10.63-14.15-9.99-3.43-23.43-34.68-51.35-76.02
Accounts Payable -1.0557.21-62.621.7647.2029.4343.5764.5195.51
Capital Expenditure -15.43-13.94-38.57-18.11-27.40-47.03-69.63-103.10-152.64-225.99
UFCF 36.49232.9552.38-82.575.5785.3964.5695.58141.51209.51
WACC
PV UFCF 76.5151.8368.7591.20120.97
SUM PV UFCF 409.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.61
Free cash flow (t + 1) 213.70
Terminal Value 2,223.75
Present Value of Terminal Value 1,284.02

Intrinsic Value

Enterprise Value 1,693.27
Net Debt -66.24
Equity Value 1,759.51
Shares Outstanding 65.05
Equity Value Per Share 27.05