Discounted Cash Flow (DCF) Analysis Unlevered

Ring Energy, Inc. (REI)

$2.305

-0.01 (-0.22%)
All numbers are in Millions, Currency in USD
Stock DCF: -121.76 | 2.305 | overvalue

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 66.70120.07195.70113.03196.31281.92404.86581.42834.991,199.13
Revenue (%)
EBITDA 32.9851.90113.35-198.7855.071.562.243.224.626.64
EBITDA (%)
EBIT -----1.562.243.224.626.64
EBIT (%)
Depreciation ----------
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 15.013.36103.582.4119.6228.1840.4758.1283.47
Total Cash (%)
Account Receivables 13.8913.2224.7216.8326.4641.0658.9784.69121.63174.67
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 44.4851.9154.6432.5046.23107.21153.96221.10317.53456
Accounts Payable (%)
Capital Expenditure -157.91-203.53-155.53-43.83-53.24-311.03-446.67-641.47-921.22-1,322.97
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.305
Beta 2.040
Diluted Shares Outstanding 121.19
Cost of Debt
Tax Rate 2.65
After-tax Cost of Debt 4.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.095
Total Debt 292.68
Total Equity 279.35
Total Capital 572.03
Debt Weighting 51.16
Equity Weighting 48.84
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 66.70120.07195.70113.03196.31281.92404.86581.42834.991,199.13
EBITDA 32.9851.90113.35-198.7855.071.562.243.224.626.64
EBIT -----1.562.243.224.626.64
Tax Rate 85.59%27.69%31.85%2.31%2.65%30.02%30.02%30.02%30.02%30.02%
EBIAT -----1.091.572.253.234.65
Depreciation ----------
Accounts Receivable -0.67-11.507.90-9.64-14.60-17.91-25.72-36.93-53.04
Inventories ----------
Accounts Payable -7.442.73-22.1413.7360.9746.7567.1496.42138.48
Capital Expenditure -157.91-203.53-155.53-43.83-53.24-311.03-446.67-641.47-921.22-1,322.97
UFCF ------263.57-416.26-597.79-858.49-1,232.89
WACC
PV UFCF -242.12-351.26-463.39-611.31-806.46
SUM PV UFCF -2,474.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.86
Free cash flow (t + 1) -1,257.55
Terminal Value -18,331.59
Present Value of Terminal Value -11,991.08

Intrinsic Value

Enterprise Value -14,465.62
Net Debt 290.27
Equity Value -14,755.89
Shares Outstanding 121.19
Equity Value Per Share -121.76