Discounted Cash Flow (DCF) Analysis Unlevered

Parkland Corporation (PKI.TO)

$39.41

+0.52 (+1.34%)

All numbers are in Millions, Currency in USD

Stock DCF: 398.93 | 39.41 | 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	14,442	18,453	14,011	21,468	35,462	46,287.58	60,417.91	78,861.84	102,936.21	134,359.82
Revenue (%)
EBITDA	892	1,335	1,003	1,404	1,993	3,029.96	3,954.93	5,162.26	6,738.15	8,795.13
EBITDA (%)
EBIT	591	755	394	788	1,250	1,684.06	2,198.16	2,869.19	3,745.08	4,888.35
EBIT (%)
Depreciation	301	580	609	616	743	1,345.90	1,756.77	2,293.06	2,993.07	3,906.78
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	40	244	262	284	653	614.10	801.57	1,046.26	1,365.66	1,782.56
Total Cash (%)
Account Receivables	665	1,083	826	1,399	1,886	2,610.99	3,408.05	4,448.44	5,806.43	7,578.97
Account Receivables (%)
Inventories	389	780	650	1,265	1,745	2,071.18	2,703.45	3,528.74	4,605.97	6,012.05
Inventories (%)
Accounts Payable	806	1,358	1,212	1,950	2,806	3,572.15	4,662.63	6,086.01	7,943.90	10,368.95
Accounts Payable (%)
Capital Expenditure	-285	-489	-345	-396	-503	-958.04	-1,250.50	-1,632.25	-2,130.53	-2,780.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 39.41
Beta	1.405
Diluted Shares Outstanding	152.47
Cost of Debt
Tax Rate	25.48
After-tax Cost of Debt	3.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.111
Total Debt	6,972
Total Equity	6,008.84
Total Capital	12,980.84
Debt Weighting	53.71
Equity Weighting	46.29
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	14,442	18,453	14,011	21,468	35,462	46,287.58	60,417.91	78,861.84	102,936.21	134,359.82
EBITDA	892	1,335	1,003	1,404	1,993	3,029.96	3,954.93	5,162.26	6,738.15	8,795.13
EBIT	591	755	394	788	1,250	1,684.06	2,198.16	2,869.19	3,745.08	4,888.35
Tax Rate	25.63%	30.16%	27.27%	40.12%	25.48%	29.73%	29.73%	29.73%	29.73%	29.73%
EBIAT	439.52	527.26	286.55	471.83	931.49	1,183.31	1,544.54	2,016.05	2,631.49	3,434.82
Depreciation	301	580	609	616	743	1,345.90	1,756.77	2,293.06	2,993.07	3,906.78
Accounts Receivable	-	-418	257	-573	-487	-724.99	-797.06	-1,040.39	-1,357.99	-1,772.54
Inventories	-	-391	130	-615	-480	-326.18	-632.27	-825.29	-1,077.23	-1,406.08
Accounts Payable	-	552	-146	738	856	766.15	1,090.48	1,423.37	1,857.89	2,425.05
Capital Expenditure	-285	-489	-345	-396	-503	-958.04	-1,250.50	-1,632.25	-2,130.53	-2,780.92
UFCF	455.52	361.26	791.55	241.83	1,060.49	1,286.16	1,711.95	2,234.57	2,916.72	3,807.11
WACC
PV UFCF						1,203.82	1,499.77	1,832.28	2,238.51	2,734.80
SUM PV UFCF										9,509.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.84
Free cash flow (t + 1)	3,883.25
Terminal Value	80,232.51
Present Value of Terminal Value	57,634.30

Intrinsic Value

Enterprise Value	67,143.47
Net Debt	6,319
Equity Value	60,824.47
Shares Outstanding	152.47
Equity Value Per Share	398.93