Discounted Cash Flow (DCF) Analysis Unlevered

Neovasc Inc. (NVCN)

$8.01

+0.51 (+6.80%)
All numbers are in Millions, Currency in USD
Stock DCF: -145.15 | 8.01 | 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 5.391.752.091.962.552.392.252.111.981.86
Revenue (%)
EBITDA -26.98-107.37-34.33-27.42-23.50-50.75-47.67-44.79-42.07-39.52
EBITDA (%)
EBIT -27.52-107.75-34.97-28.18-24.17-51.36-48.25-45.33-42.58-40
EBIT (%)
Depreciation 0.530.380.640.770.670.610.580.540.510.48
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 17.519.245.2912.9451.5418.1417.0416.0115.0414.13
Total Cash (%)
Account Receivables 1.330.650.801.081.411.010.950.890.840.79
Account Receivables (%)
Inventories 0.400.260.620.841.480.730.690.650.610.57
Inventories (%)
Accounts Payable 1.260.903.993.711.432.452.302.162.031.91
Accounts Payable (%)
Capital Expenditure -0.51-0.19-0.24-0.34-0.16-0.27-0.25-0.24-0.22-0.21
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.01
Beta 2.157
Diluted Shares Outstanding 2.49
Cost of Debt
Tax Rate -0.35
After-tax Cost of Debt 7.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.873
Total Debt 8.96
Total Equity 19.94
Total Capital 28.90
Debt Weighting 31.01
Equity Weighting 68.99
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 5.391.752.091.962.552.392.252.111.981.86
EBITDA -26.98-107.37-34.33-27.42-23.50-50.75-47.67-44.79-42.07-39.52
EBIT -27.52-107.75-34.97-28.18-24.17-51.36-48.25-45.33-42.58-40
Tax Rate -2.16%-0.10%-0.08%1.79%-0.35%-0.18%-0.18%-0.18%-0.18%-0.18%
EBIAT -28.11-107.86-35-27.68-24.26-51.45-48.34-45.41-42.66-40.07
Depreciation 0.530.380.640.770.670.610.580.540.510.48
Accounts Receivable -0.69-0.16-0.28-0.330.400.060.060.050.05
Inventories -0.14-0.36-0.22-0.640.750.040.040.040.04
Accounts Payable --0.363.09-0.29-2.271.01-0.15-0.14-0.13-0.12
Capital Expenditure -0.51-0.19-0.24-0.34-0.16-0.27-0.25-0.24-0.22-0.21
UFCF -28.08-107.20-32.02-28.04-26.99-48.94-48.05-45.14-42.41-39.84
WACC
PV UFCF -43.80-38.48-32.35-27.19-22.86
SUM PV UFCF -164.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.75
Free cash flow (t + 1) -40.64
Terminal Value -416.78
Present Value of Terminal Value -239.15

Intrinsic Value

Enterprise Value -403.83
Net Debt -42.58
Equity Value -361.25
Shares Outstanding 2.49
Equity Value Per Share -145.15