Discounted Cash Flow (DCF) Analysis Unlevered

Precision Drilling Corporation (PDS)

$48.52

+0.01 (+0.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 124.19 | 48.52 | undervalue

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 1,541.191,541.32935.75986.851,617.191,738.701,869.352,009.802,160.812,323.17
Revenue (%)
EBITDA 164.25439.42309.14190.97352.71394.22423.84455.68489.92526.73
EBITDA (%)
EBIT -201.41105.80-7.18-91.3573.67-40.59-43.64-46.92-50.45-54.24
EBIT (%)
Depreciation 365.66333.62316.32282.33279.04434.81467.48502.60540.37580.97
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 96.6374.70108.7740.5921.5998.02105.39113.30121.82130.97
Total Cash (%)
Account Receivables 312.02245.11130.70255.74413.92353.39379.94408.49439.19472.18
Account Receivables (%)
Inventories 34.0831.7226.2823.4335.1640.4343.4746.7350.2454.02
Inventories (%)
Accounts Payable 129.4991.4756.92224.12392.05234.28251.89270.81291.16313.04
Accounts Payable (%)
Capital Expenditure -126.14-160.69-61.59-75.94-184.25-153.98-165.55-177.99-191.37-205.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 48.52
Beta 3.178
Diluted Shares Outstanding 13.55
Cost of Debt
Tax Rate -142.47
After-tax Cost of Debt 7.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 18.382
Total Debt 1,153.93
Total Equity 657.25
Total Capital 1,811.18
Debt Weighting 63.71
Equity Weighting 36.29
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 1,541.191,541.32935.75986.851,617.191,738.701,869.352,009.802,160.812,323.17
EBITDA 164.25439.42309.14190.97352.71394.22423.84455.68489.92526.73
EBIT -201.41105.80-7.18-91.3573.67-40.59-43.64-46.92-50.45-54.24
Tax Rate 9.06%179.36%-10.03%2.95%-142.47%7.77%7.77%7.77%7.77%7.77%
EBIAT -183.16-83.97-7.90-88.65178.63-37.44-40.25-43.27-46.52-50.02
Depreciation 365.66333.62316.32282.33279.04434.81467.48502.60540.37580.97
Accounts Receivable -66.91114.40-125.04-158.1860.53-26.55-28.55-30.69-33
Inventories -2.365.442.85-11.73-5.27-3.04-3.27-3.51-3.78
Accounts Payable --38.02-34.55167.20167.93-157.7717.6018.9320.3521.88
Capital Expenditure -126.14-160.69-61.59-75.94-184.25-153.98-165.55-177.99-191.37-205.74
UFCF 56.36120.20332.12162.75271.43140.88249.69268.45288.62310.31
WACC
PV UFCF 126.33200.77193.56186.60179.90
SUM PV UFCF 887.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.52
Free cash flow (t + 1) 316.51
Terminal Value 3,324.71
Present Value of Terminal Value 1,927.48

Intrinsic Value

Enterprise Value 2,814.64
Net Debt 1,132.35
Equity Value 1,682.29
Shares Outstanding 13.55
Equity Value Per Share 124.19