Discounted Cash Flow (DCF) Analysis Unlevered

Mainstreet Equity Corp. (MEQ.TO)

$107

-2.00 (-1.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.43 | 107 | 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 104.66115.67137.61149.77159.93177.96198.03220.36245.20272.85
Revenue (%)
EBITDA 137.14119.9398.09114.08293.28201.29223.99249.25277.36308.63
EBITDA (%)
EBIT 136.73119.4797.59113.21292.38200.47223.08248.23276.23307.37
EBIT (%)
Depreciation 0.410.460.500.870.900.820.911.021.131.26
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 24.770.380.0738.4719.2221.9824.4627.2230.2933.70
Total Cash (%)
Account Receivables 1.110.931.991.421.191.781.982.212.462.73
Account Receivables (%)
Inventories 0.240.680.960.991.901.201.341.491.661.84
Inventories (%)
Accounts Payable 5.715.607.698.407.499.3110.3611.5312.8314.28
Accounts Payable (%)
Capital Expenditure -76.65-94.48-146.01-105.64-23.06-123.14-137.02-152.47-169.67-188.80
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 107
Beta 1.557
Diluted Shares Outstanding 9.37
Cost of Debt
Tax Rate 12.89
After-tax Cost of Debt 2.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.314
Total Debt 1,357.18
Total Equity 1,002.31
Total Capital 2,359.48
Debt Weighting 57.52
Equity Weighting 42.48
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 104.66115.67137.61149.77159.93177.96198.03220.36245.20272.85
EBITDA 137.14119.9398.09114.08293.28201.29223.99249.25277.36308.63
EBIT 136.73119.4797.59113.21292.38200.47223.08248.23276.23307.37
Tax Rate 16.06%19.92%10.97%14.57%12.89%14.88%14.88%14.88%14.88%14.88%
EBIAT 114.7895.6886.8896.71254.70170.64189.89211.30235.12261.64
Depreciation 0.410.460.500.870.900.820.911.021.131.26
Accounts Receivable -0.18-1.050.570.22-0.59-0.20-0.22-0.25-0.28
Inventories --0.44-0.28-0.03-0.910.70-0.14-0.15-0.17-0.19
Accounts Payable --0.112.090.71-0.901.821.051.171.301.45
Capital Expenditure -76.65-94.48-146-105.64-23.06-123.14-137.02-152.47-169.67-188.80
UFCF 38.541.29-57.86-6.81230.9650.2654.4960.6367.4775.08
WACC
PV UFCF 47.3948.4650.8553.3656
SUM PV UFCF 256.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.04
Free cash flow (t + 1) 76.58
Terminal Value 1,895.55
Present Value of Terminal Value 1,413.79

Intrinsic Value

Enterprise Value 1,669.86
Net Debt 1,337.95
Equity Value 331.90
Shares Outstanding 9.37
Equity Value Per Share 35.43