Discounted Cash Flow (DCF) Analysis Unlevered

Sprott Inc. (SII.TO)

$44

+1.75 (+4.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.13 | 44 | 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 91.0173.2975.05110.45164.95197.70236.97284.03340.44408.05
Revenue (%)
EBITDA 39.5525.5918.0339.9549.7466.7279.9795.85114.89137.70
EBITDA (%)
EBIT 34.4423.9814.1835.9045.1959.0670.7884.84101.69121.89
EBIT (%)
Depreciation 5.111.613.854.054.557.669.1911.0113.2015.82
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 175.4954.3072.2253.5855.94176.19211.18253.12303.39363.65
Total Cash (%)
Account Receivables 25.7319.3010.1222.5314.8038.5346.1955.3666.3579.53
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 12.5726.5323.6129.709.3645.1054.0564.7977.6693.08
Accounts Payable (%)
Capital Expenditure -0.82-90.69-2.26-13.19-0.69-55.36-66.36-79.54-95.33-114.27
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 44
Beta 1.181
Diluted Shares Outstanding 25.91
Cost of Debt
Tax Rate 26.57
After-tax Cost of Debt 3.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.536
Total Debt 29.77
Total Equity 1,139.95
Total Capital 1,169.72
Debt Weighting 2.54
Equity Weighting 97.46
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 91.0173.2975.05110.45164.95197.70236.97284.03340.44408.05
EBITDA 39.5525.5918.0339.9549.7466.7279.9795.85114.89137.70
EBIT 34.4423.9814.1835.9045.1959.0670.7884.84101.69121.89
Tax Rate 13.33%3.91%21.10%22.17%26.57%17.42%17.42%17.42%17.42%17.42%
EBIAT 29.8523.0411.1927.9433.1848.7758.4670.0783.98100.66
Depreciation 5.111.613.854.054.557.669.1911.0113.2015.82
Accounts Receivable -6.429.18-12.417.73-23.74-7.65-9.17-10.99-13.18
Inventories ----------
Accounts Payable -13.96-2.926.09-20.3435.738.9610.7412.8715.42
Capital Expenditure -0.82-90.69-2.26-13.19-0.69-55.36-66.36-79.54-95.33-114.27
UFCF 34.14-45.6519.0412.4924.4413.072.593.103.724.45
WACC
PV UFCF 11.942.162.372.592.84
SUM PV UFCF 21.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.39
Free cash flow (t + 1) 4.54
Terminal Value 61.46
Present Value of Terminal Value 39.24

Intrinsic Value

Enterprise Value 61.15
Net Debt -20.04
Equity Value 81.18
Shares Outstanding 25.91
Equity Value Per Share 3.13