Discounted Cash Flow (DCF) Analysis Unlevered
Quarterhill Inc. (QTRH.TO)
$1.24
-0.01 (-0.80%)
All numbers are in Millions, Currency in USD
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 | 169.40 | 105.42 | 191.66 | 144.53 | 125.69 | 127.71 | 129.76 | 131.84 | 133.95 | 136.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 47.16 | -39.52 | 50.19 | 44.78 | -1.02 | 11.93 | 12.12 | 12.32 | 12.51 | 12.71 |
| EBITDA (%) | ||||||||||
| EBIT | 14.49 | -76.50 | 21.84 | 23.98 | -24.40 | -14.16 | -14.39 | -14.62 | -14.85 | -15.09 |
| EBIT (%) | ||||||||||
| Depreciation | 32.67 | 36.98 | 28.35 | 20.80 | 23.38 | 26.09 | 26.51 | 26.93 | 27.37 | 27.80 |
| 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 | 104.44 | 88.62 | 89.62 | 141.25 | 72.60 | 88.88 | 90.30 | 91.75 | 93.22 | 94.72 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 27.99 | 20.22 | 51.89 | 27.30 | 66.10 | 34.29 | 34.84 | 35.40 | 35.97 | 36.54 |
| Account Receivables (%) | ||||||||||
| Inventories | 6.39 | 8.12 | 8.59 | 9.07 | 13.73 | 8.47 | 8.60 | 8.74 | 8.88 | 9.02 |
| Inventories (%) | ||||||||||
| Accounts Payable | 4.22 | 6.10 | 4.46 | 10.04 | 25.45 | 9.65 | 9.81 | 9.97 | 10.13 | 10.29 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.69 | -0.96 | -3.33 | -2.59 | -6.58 | -2.58 | -2.62 | -2.66 | -2.70 | -2.75 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.24 |
|---|---|
| Beta | 0.405 |
| Diluted Shares Outstanding | 114.01 |
| Cost of Debt | |
| Tax Rate | 17.01 |
| After-tax Cost of Debt | 1.67% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.611 |
| Total Debt | 115.90 |
| Total Equity | 141.38 |
| Total Capital | 257.28 |
| Debt Weighting | 45.05 |
| Equity Weighting | 54.95 |
| 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 | 169.40 | 105.42 | 191.66 | 144.53 | 125.69 | 127.71 | 129.76 | 131.84 | 133.95 | 136.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 47.16 | -39.52 | 50.19 | 44.78 | -1.02 | 11.93 | 12.12 | 12.32 | 12.51 | 12.71 |
| EBIT | 14.49 | -76.50 | 21.84 | 23.98 | -24.40 | -14.16 | -14.39 | -14.62 | -14.85 | -15.09 |
| Tax Rate | 2.33% | 12.89% | 35.50% | -101.65% | 17.01% | -6.79% | -6.79% | -6.79% | -6.79% | -6.79% |
| EBIAT | 14.15 | -66.64 | 14.08 | 48.35 | -20.25 | -15.12 | -15.36 | -15.61 | -15.86 | -16.11 |
| Depreciation | 32.67 | 36.98 | 28.35 | 20.80 | 23.38 | 26.09 | 26.51 | 26.93 | 27.37 | 27.80 |
| Accounts Receivable | - | 7.78 | -31.67 | 24.59 | -38.81 | 31.81 | -0.55 | -0.56 | -0.57 | -0.58 |
| Inventories | - | -1.73 | -0.47 | -0.48 | -4.66 | 5.26 | -0.14 | -0.14 | -0.14 | -0.14 |
| Accounts Payable | - | 1.88 | -1.64 | 5.58 | 15.41 | -15.79 | 0.15 | 0.16 | 0.16 | 0.16 |
| Capital Expenditure | -0.69 | -0.96 | -3.33 | -2.59 | -6.58 | -2.58 | -2.62 | -2.66 | -2.70 | -2.75 |
| UFCF | 46.13 | -22.69 | 5.31 | 96.26 | -31.51 | 29.67 | 8 | 8.12 | 8.25 | 8.39 |
| WACC | ||||||||||
| PV UFCF | 28.58 | 7.42 | 7.26 | 7.10 | 6.95 | |||||
| SUM PV UFCF | 57.30 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.83 |
| Free cash flow (t + 1) | 8.55 |
| Terminal Value | 467.43 |
| Present Value of Terminal Value | 387.35 |
Intrinsic Value
| Enterprise Value | 444.65 |
|---|---|
| Net Debt | 45.15 |
| Equity Value | 399.49 |
| Shares Outstanding | 114.01 |
| Equity Value Per Share | 3.50 |