Discounted Cash Flow (DCF) Analysis Unlevered

Parkland Corporation (PKI.TO)

$33.75

-0.13 (-0.38%)

All numbers are in Millions, Currency in USD

Stock DCF: 193.37 | 33.75 | undervalue

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	9,560.50	14,442	18,453	14,011	21,468	27,263.43	34,623.38	43,970.20	55,840.25	70,914.70
Revenue (%)
EBITDA	315	708	1,321	966	972	1,460.13	1,854.30	2,354.88	2,990.60	3,797.93
EBITDA (%)
EBIT	149.40	407	741	357	356	687.19	872.70	1,108.29	1,407.48	1,787.44
EBIT (%)
Depreciation	165.60	301	580	609	616	772.94	981.60	1,246.59	1,583.12	2,010.49
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	22.50	40	244	262	284	274.13	348.13	442.12	561.47	713.04
Total Cash (%)
Account Receivables	705.10	665	1,083	826	1,399	1,650.02	2,095.46	2,661.14	3,379.54	4,291.87
Account Receivables (%)
Inventories	398.60	389	780	650	1,265	1,178.95	1,497.21	1,901.40	2,414.69	3,066.55
Inventories (%)
Accounts Payable	941.90	806	1,358	1,212	1,950	2,209.75	2,806.28	3,563.86	4,525.94	5,747.75
Accounts Payable (%)
Capital Expenditure	-91.30	-285	-489	-345	-396	-539.02	-684.53	-869.32	-1,104	-1,402.03
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 33.75
Beta	1.570
Diluted Shares Outstanding	149.07
Cost of Debt
Tax Rate	40.12
After-tax Cost of Debt	2.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.259
Total Debt	5,556
Total Equity	5,031.25
Total Capital	10,587.25
Debt Weighting	52.48
Equity Weighting	47.52
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	9,560.50	14,442	18,453	14,011	21,468	27,263.43	34,623.38	43,970.20	55,840.25	70,914.70
EBITDA	315	708	1,321	966	972	1,460.13	1,854.30	2,354.88	2,990.60	3,797.93
EBIT	149.40	407	741	357	356	687.19	872.70	1,108.29	1,407.48	1,787.44
Tax Rate	-20.32%	25.63%	30.16%	46.75%	40.12%	24.47%	24.47%	24.47%	24.47%	24.47%
EBIAT	179.76	302.68	517.48	190.09	213.16	519.03	659.15	837.09	1,063.07	1,350.05
Depreciation	165.60	301	580	609	616	772.94	981.60	1,246.59	1,583.12	2,010.49
Accounts Receivable	-	40.10	-418	257	-573	-251.02	-445.44	-565.68	-718.39	-912.33
Inventories	-	9.60	-391	130	-615	86.05	-318.27	-404.18	-513.29	-651.86
Accounts Payable	-	-135.90	552	-146	738	259.75	596.54	757.57	962.09	1,221.81
Capital Expenditure	-91.30	-285	-489	-345	-396	-539.02	-684.53	-869.32	-1,104	-1,402.03
UFCF	254.06	232.48	351.48	695.09	-16.84	847.73	789.06	1,002.07	1,272.58	1,616.13
WACC
PV UFCF						798.69	700.41	838.03	1,002.70	1,199.72
SUM PV UFCF										4,539.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.14
Free cash flow (t + 1)	1,648.45
Terminal Value	39,817.64
Present Value of Terminal Value	29,558.34

Intrinsic Value

Enterprise Value	34,097.89
Net Debt	5,272
Equity Value	28,825.89
Shares Outstanding	149.07
Equity Value Per Share	193.37