Discounted Cash Flow (DCF) Analysis Unlevered

Ready Capital Corporation (RC)

$13.76

-0.12 (-0.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 826.95 | 13.76 | 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 144.76148.94136.43253.49383.37509.44676.95899.551,195.351,588.42
Revenue (%)
EBITDA 119.77169.88214.30262.29400.39572.39760.601,010.711,343.061,784.70
EBITDA (%)
EBIT 119.77169.88214.30228.73349.65504.96671.01891.651,184.851,574.46
EBIT (%)
Depreciation ---33.5550.7467.4389.60119.06158.21210.23
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 63.4254.4167.93138.97229.53249.45331.48440.47585.32777.78
Total Cash (%)
Account Receivables 23.2123.4267.9941.1483.18121.78161.83215.04285.75379.72
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 15.9824.8331.4527.0141.3873.5797.76129.91172.62229.39
Accounts Payable (%)
Capital Expenditure --1.5718.8716.1924.4932.5443.2457.4676.35101.46
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 13.76
Beta 1.178
Diluted Shares Outstanding 71.79
Cost of Debt
Tax Rate 16.56
After-tax Cost of Debt 3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.358
Total Debt 4,931.50
Total Equity 987.79
Total Capital 5,919.30
Debt Weighting 83.31
Equity Weighting 16.69
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 144.76148.94136.43253.49383.37509.44676.95899.551,195.351,588.42
EBITDA 119.77169.88214.30262.29400.39572.39760.601,010.711,343.061,784.70
EBIT 119.77169.88214.30228.73349.65504.96671.01891.651,184.851,574.46
Tax Rate 9.16%5.70%-13.12%17.60%16.56%7.18%7.18%7.18%7.18%7.18%
EBIAT 108.81160.19242.42188.48291.74468.70622.83827.631,099.781,461.42
Depreciation ---33.5550.7467.4389.60119.06158.21210.23
Accounts Receivable --0.21-44.5726.86-42.04-38.60-40.05-53.21-70.71-93.96
Inventories ----------
Accounts Payable -8.856.62-4.4414.3732.1924.1932.1542.7256.76
Capital Expenditure --1.5718.8716.1924.4932.5443.2457.4676.35101.46
UFCF 108.81167.26223.34260.64339.28562.26739.81983.081,306.341,735.91
WACC
PV UFCF 538.56678.76863.951,099.651,399.66
SUM PV UFCF 4,580.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.40
Free cash flow (t + 1) 1,770.62
Terminal Value 73,775.99
Present Value of Terminal Value 59,485.70

Intrinsic Value

Enterprise Value 64,066.28
Net Debt 4,701.97
Equity Value 59,364.31
Shares Outstanding 71.79
Equity Value Per Share 826.95