Discounted Cash Flow (DCF) Analysis Unlevered

RPC, Inc. (RES)

$7.92

-0.28 (-3.41%)

All numbers are in Millions, Currency in USD

Stock DCF: -9.62 | 7.92 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,721.01	1,222.41	598.30	864.93	1,601.76	1,800.89	2,024.77	2,276.49	2,559.50	2,877.69
Revenue (%)
EBITDA	388.56	59.84	-213.75	90.88	290.33	73.40	82.53	92.79	104.32	117.29
EBITDA (%)
EBIT	221.77	-112.77	-309.06	18.38	290.25	-99.95	-112.37	-126.34	-142.05	-159.71
EBIT (%)
Depreciation	166.79	172.61	95.31	72.51	0.08	173.35	194.90	219.13	246.38	277
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	116.26	50.02	84.50	82.43	126.42	152.69	171.68	193.02	217.01	243.99
Total Cash (%)
Account Receivables	359.36	266.72	244.71	317.14	458.97	536.39	603.07	678.04	762.33	857.10
Account Receivables (%)
Inventories	130.08	100.95	82.92	78.98	97.11	161.61	181.70	204.29	229.69	258.24
Inventories (%)
Accounts Payable	103.40	53.15	41.08	74.40	115.21	118.92	133.70	150.33	169.01	190.03
Accounts Payable (%)
Capital Expenditure	-242.61	-250.63	-65.07	-67.64	-0.14	-191.99	-215.86	-242.69	-272.87	-306.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 7.92
Beta	1.819
Diluted Shares Outstanding	215.64
Cost of Debt
Tax Rate	24.61
After-tax Cost of Debt	1.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.086
Total Debt	30.25
Total Equity	1,707.87
Total Capital	1,738.11
Debt Weighting	1.74
Equity Weighting	98.26
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,721.01	1,222.41	598.30	864.93	1,601.76	1,800.89	2,024.77	2,276.49	2,559.50	2,877.69
EBITDA	388.56	59.84	-213.75	90.88	290.33	73.40	82.53	92.79	104.32	117.29
EBIT	221.77	-112.77	-309.06	18.38	290.25	-99.95	-112.37	-126.34	-142.05	-159.71
Tax Rate	20.73%	22.98%	31.43%	56.12%	24.61%	31.17%	31.17%	31.17%	31.17%	31.17%
EBIAT	175.79	-86.85	-211.94	8.06	218.83	-68.79	-77.34	-86.96	-97.77	-109.92
Depreciation	166.79	172.61	95.31	72.51	0.08	173.35	194.90	219.13	246.38	277
Accounts Receivable	-	92.65	22	-72.42	-141.83	-77.41	-66.68	-74.97	-84.29	-94.77
Inventories	-	29.14	18.03	3.93	-18.12	-64.50	-20.09	-22.59	-25.40	-28.55
Accounts Payable	-	-50.25	-12.07	33.32	40.81	3.71	14.78	16.62	18.69	21.01
Capital Expenditure	-242.61	-250.63	-65.06	-67.64	-0.14	-191.99	-215.86	-242.69	-272.87	-306.79
UFCF	99.97	-93.35	-153.73	-22.24	99.62	-225.64	-170.29	-191.46	-215.26	-242.02
WACC
PV UFCF						-201.64	-136	-136.64	-137.29	-137.94
SUM PV UFCF										-749.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.90
Free cash flow (t + 1)	-246.86
Terminal Value	-2,493.54
Present Value of Terminal Value	-1,421.24

Intrinsic Value

Enterprise Value	-2,170.75
Net Debt	-96.18
Equity Value	-2,074.57
Shares Outstanding	215.64
Equity Value Per Share	-9.62