Discounted Cash Flow (DCF) Analysis Unlevered

Shaw Communications Inc. (SJR)

$29.78

-0.13 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.43 | 29.78 | undervalue

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 5,2395,3405,4075,5095,4485,501.965,556.455,611.485,667.065,723.19
Revenue (%)
EBITDA 1,4722,1772,3682,5222,5162,251.642,273.942,296.462,319.212,342.18
EBITDA (%)
EBIT 4571,1361,1481,3011,2861,083.331,094.051,104.891,115.831,126.89
EBIT (%)
Depreciation 1,0151,0411,2201,2211,2301,168.311,179.881,191.571,203.371,215.29
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 3841,446763355421689.85696.68703.58710.55717.59
Total Cash (%)
Account Receivables 438517527653606558.62564.15569.74575.38581.08
Account Receivables (%)
Inventories 1018660639282.3183.1383.9584.7885.62
Inventories (%)
Accounts Payable 9811482112133110111.09112.19113.30114.42
Accounts Payable (%)
Capital Expenditure -1,332-1,298-1,151-1,017-1,096-1,206-1,217.94-1,230.01-1,242.19-1,254.49
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 29.78
Beta 0.369
Diluted Shares Outstanding 505
Cost of Debt
Tax Rate 25.17
After-tax Cost of Debt 3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.259
Total Debt 5,883
Total Equity 15,038.90
Total Capital 20,921.90
Debt Weighting 28.12
Equity Weighting 71.88
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 5,2395,3405,4075,5095,4485,501.965,556.455,611.485,667.065,723.19
EBITDA 1,4722,1772,3682,5222,5162,251.642,273.942,296.462,319.212,342.18
EBIT 4571,1361,1481,3011,2861,083.331,094.051,104.891,115.831,126.89
Tax Rate 71.29%14.10%20.65%4.46%25.17%27.13%27.13%27.13%27.13%27.13%
EBIAT 131.20975.81910.981,243.01962.30789.38797.20805.10813.07821.12
Depreciation 1,0151,0411,2201,2211,2301,168.311,179.881,191.571,203.371,215.29
Accounts Receivable --79-10-1264747.38-5.53-5.59-5.64-5.70
Inventories -1526-3-299.69-0.82-0.82-0.83-0.84
Accounts Payable -16-323021-231.091.101.111.12
Capital Expenditure -1,332-1,298-1,151-1,017-1,096-1,206-1,217.94-1,230.01-1,242.19-1,254.49
UFCF -185.80670.81963.991,348.011,135.30785.76753.88761.35768.89776.50
WACC
PV UFCF 750.28687.32662.78639.12616.29
SUM PV UFCF 3,355.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.73
Free cash flow (t + 1) 792.03
Terminal Value 29,012.26
Present Value of Terminal Value 23,026.40

Intrinsic Value

Enterprise Value 26,382.19
Net Debt 5,462
Equity Value 20,920.19
Shares Outstanding 505
Equity Value Per Share 41.43