Discounted Cash Flow (DCF) Analysis Unlevered

Quebecor Inc. (QBR-B.TO)

$25.47

-0.11 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 83.68 | 25.47 | 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 4,122.404,1814,293.804,317.804,554.404,670.064,788.664,910.265,034.965,162.82
Revenue (%)
EBITDA 1,525.801,603.201,931.301,937.301,888.901,930.401,979.422,029.692,081.232,134.08
EBITDA (%)
EBIT 813.408831,180.901,134.101,105.101,110.381,138.581,167.501,197.141,227.55
EBIT (%)
Depreciation 712.40720.20750.40803.20783.80820.01840.84862.19884.09906.54
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 864.902114136.7064.70246.54252.80259.22265.80272.55
Total Cash (%)
Account Receivables 572.70703735.40780.40881.80796.42816.65837.39858.65880.46
Account Receivables (%)
Inventories 188.10186.30240.40250.70282.60248.72255.03261.51268.15274.96
Inventories (%)
Accounts Payable 516.30619.50578.70666.80681.70665.30682.19699.51717.28735.49
Accounts Payable (%)
Capital Expenditure -747.50-750.40-998.50-653.10-1,448-992.43-1,017.63-1,043.47-1,069.97-1,097.14
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 25.47
Beta 0.284
Diluted Shares Outstanding 248.30
Cost of Debt
Tax Rate 26.36
After-tax Cost of Debt 3.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.146
Total Debt 6,857.60
Total Equity 6,324.20
Total Capital 13,181.80
Debt Weighting 52.02
Equity Weighting 47.98
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 4,122.404,1814,293.804,317.804,554.404,670.064,788.664,910.265,034.965,162.82
EBITDA 1,525.801,603.201,931.301,937.301,888.901,930.401,979.422,029.692,081.232,134.08
EBIT 813.408831,180.901,134.101,105.101,110.381,138.581,167.501,197.141,227.55
Tax Rate 40.99%32.78%14.83%23.14%26.36%27.62%27.62%27.62%27.62%27.62%
EBIAT 479.99593.551,005.73871.68813.84803.70824.11845.03866.49888.50
Depreciation 712.40720.20750.40803.20783.80820.01840.84862.19884.09906.54
Accounts Receivable --130.30-32.40-45-101.4085.38-20.23-20.74-21.27-21.81
Inventories -1.80-54.10-10.30-31.9033.88-6.32-6.48-6.64-6.81
Accounts Payable -103.20-40.8088.1014.90-16.4016.9017.3217.7618.22
Capital Expenditure -747.50-750.40-998.50-653.10-1,448-992.43-1,017.63-1,043.47-1,069.97-1,097.14
UFCF 444.89538.05630.331,054.5831.24734.14637.67653.86670.47687.50
WACC
PV UFCF 703.81586.06576.12566.34556.72
SUM PV UFCF 2,989.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.31
Free cash flow (t + 1) 701.25
Terminal Value 30,356.93
Present Value of Terminal Value 24,582.62

Intrinsic Value

Enterprise Value 27,571.67
Net Debt 6,792.90
Equity Value 20,778.77
Shares Outstanding 248.30
Equity Value Per Share 83.68