Discounted Cash Flow (DCF) Analysis Unlevered
Mainstreet Equity Corp. (MEQ.TO)
$127.22
+0.72 (+0.57%)
All numbers are in Millions, Currency in USD
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 | 115.67 | 137.61 | 149.77 | 159.93 | 180.57 | 202.02 | 226.01 | 252.85 | 282.87 | 316.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 119.93 | 98.09 | 114.08 | 293.28 | 180.65 | 215.98 | 241.63 | 270.33 | 302.43 | 338.34 |
| EBITDA (%) | ||||||||||
| EBIT | 119.47 | 97.59 | 113.21 | 292.38 | 179.73 | 215.01 | 240.54 | 269.10 | 301.06 | 336.81 |
| EBIT (%) | ||||||||||
| Depreciation | 0.46 | 0.50 | 0.87 | 0.90 | 0.92 | 0.98 | 1.09 | 1.22 | 1.37 | 1.53 |
| 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 | 0.38 | 0.07 | 38.47 | 19.22 | 44.56 | 25.36 | 28.37 | 31.74 | 35.51 | 39.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 0.93 | 1.99 | 1.42 | 1.19 | 1.55 | 1.94 | 2.17 | 2.43 | 2.72 | 3.04 |
| Account Receivables (%) | ||||||||||
| Inventories | 0.68 | 0.96 | 0.99 | 24.19 | 14.37 | 10.12 | 11.32 | 12.66 | 14.16 | 15.85 |
| Inventories (%) | ||||||||||
| Accounts Payable | 5.60 | 7.69 | 8.40 | 7.49 | 8.33 | 10.23 | 11.45 | 12.81 | 14.33 | 16.03 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.59 | -2.66 | -1.31 | -0.88 | -0.77 | -1.74 | -1.94 | -2.17 | -2.43 | -2.72 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 127.22 |
|---|---|
| Beta | 1.528 |
| Diluted Shares Outstanding | 9.35 |
| Cost of Debt | |
| Tax Rate | 15.81 |
| After-tax Cost of Debt | 2.15% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.591 |
| Total Debt | 1,433.45 |
| Total Equity | 1,188.92 |
| Total Capital | 2,622.37 |
| Debt Weighting | 54.66 |
| Equity Weighting | 45.34 |
| 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 | 115.67 | 137.61 | 149.77 | 159.93 | 180.57 | 202.02 | 226.01 | 252.85 | 282.87 | 316.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 119.93 | 98.09 | 114.08 | 293.28 | 180.65 | 215.98 | 241.63 | 270.33 | 302.43 | 338.34 |
| EBIT | 119.47 | 97.59 | 113.21 | 292.38 | 179.73 | 215.01 | 240.54 | 269.10 | 301.06 | 336.81 |
| Tax Rate | 19.92% | 10.97% | 14.57% | 12.89% | 15.81% | 14.83% | 14.83% | 14.83% | 14.83% | 14.83% |
| EBIAT | 95.68 | 86.88 | 96.71 | 254.70 | 151.32 | 183.12 | 204.87 | 229.20 | 256.41 | 286.86 |
| Depreciation | 0.46 | 0.50 | 0.87 | 0.90 | 0.92 | 0.98 | 1.09 | 1.22 | 1.37 | 1.53 |
| Accounts Receivable | - | -1.05 | 0.57 | 0.22 | -0.35 | -0.39 | -0.23 | -0.26 | -0.29 | -0.32 |
| Inventories | - | -0.28 | -0.03 | -23.20 | 9.82 | 4.25 | -1.20 | -1.34 | -1.50 | -1.68 |
| Accounts Payable | - | 2.09 | 0.71 | -0.90 | 0.84 | 1.90 | 1.22 | 1.36 | 1.52 | 1.70 |
| Capital Expenditure | -0.59 | -2.66 | -1.31 | -0.88 | -0.77 | -1.74 | -1.94 | -2.17 | -2.43 | -2.72 |
| UFCF | 95.54 | 85.48 | 97.52 | 230.84 | 161.78 | 188.12 | 203.80 | 228 | 255.08 | 285.37 |
| WACC | ||||||||||
| PV UFCF | 177.51 | 181.45 | 191.54 | 202.20 | 213.45 | |||||
| SUM PV UFCF | 966.15 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.98 |
| Free cash flow (t + 1) | 291.08 |
| Terminal Value | 7,313.52 |
| Present Value of Terminal Value | 5,470.25 |
Intrinsic Value
| Enterprise Value | 6,436.40 |
|---|---|
| Net Debt | 1,388.89 |
| Equity Value | 5,047.51 |
| Shares Outstanding | 9.35 |
| Equity Value Per Share | 540.11 |