Discounted Cash Flow (DCF) Analysis Unlevered
Stantec Inc. (STN.TO)
$77.11
+1.28 (+1.69%)
All numbers are in Millions, Currency in USD
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 | 4,283.80 | 4,827.30 | 4,730.10 | 4,576.80 | 5,677.20 | 6,123.94 | 6,605.83 | 7,125.64 | 7,686.35 | 8,291.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 249.10 | 579.70 | 510.60 | 527.50 | 678.20 | 637.99 | 688.19 | 742.35 | 800.76 | 863.78 |
| EBITDA (%) | ||||||||||
| EBIT | 249.10 | 579.70 | 510.60 | 305.70 | 394.70 | 336.70 | 363.19 | 391.77 | 422.60 | 455.86 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | 221.80 | 283.50 | 301.29 | 325 | 350.58 | 378.16 | 407.92 |
| 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 | 185.20 | 223.50 | 319.70 | 215.30 | 148.30 | 282.05 | 304.24 | 328.18 | 354.01 | 381.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1,370.30 | 1,295.60 | 1,194.10 | 1,401.20 | 1,730.70 | 1,778.05 | 1,917.96 | 2,068.89 | 2,231.69 | 2,407.30 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 222.60 | 225.50 | 217.60 | 213.10 | 300.60 | 299.08 | 322.61 | 348 | 375.39 | 404.92 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -134.20 | -60.30 | -34.20 | -50.60 | -74.90 | -92.22 | -99.48 | -107.31 | -115.75 | -124.86 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 77.11 |
|---|---|
| Beta | 0.715 |
| Diluted Shares Outstanding | 111.62 |
| Cost of Debt | |
| Tax Rate | 24.02 |
| After-tax Cost of Debt | 2.75% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.939 |
| Total Debt | 1,922.60 |
| Total Equity | 8,606.76 |
| Total Capital | 10,529.36 |
| Debt Weighting | 18.26 |
| Equity Weighting | 81.74 |
| 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 | 4,283.80 | 4,827.30 | 4,730.10 | 4,576.80 | 5,677.20 | 6,123.94 | 6,605.83 | 7,125.64 | 7,686.35 | 8,291.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 249.10 | 579.70 | 510.60 | 527.50 | 678.20 | 637.99 | 688.19 | 742.35 | 800.76 | 863.78 |
| EBIT | 249.10 | 579.70 | 510.60 | 305.70 | 394.70 | 336.70 | 363.19 | 391.77 | 422.60 | 455.86 |
| Tax Rate | 79.05% | 26.78% | 21.04% | 23.69% | 24.02% | 34.92% | 34.92% | 34.92% | 34.92% | 34.92% |
| EBIAT | 52.18 | 424.46 | 403.15 | 233.29 | 299.88 | 219.13 | 236.37 | 254.97 | 275.04 | 296.68 |
| Depreciation | - | - | - | 221.80 | 283.50 | 301.29 | 325 | 350.58 | 378.16 | 407.92 |
| Accounts Receivable | - | 74.70 | 101.50 | -207.10 | -329.50 | -47.35 | -139.91 | -150.92 | -162.80 | -175.61 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 2.90 | -7.90 | -4.50 | 87.50 | -1.52 | 23.53 | 25.39 | 27.38 | 29.54 |
| Capital Expenditure | -134.20 | -60.30 | -34.20 | -50.60 | -74.90 | -92.22 | -99.48 | -107.31 | -115.75 | -124.86 |
| UFCF | -82.02 | 441.76 | 462.55 | 192.89 | 266.48 | 379.33 | 345.52 | 372.70 | 402.03 | 433.67 |
| WACC | ||||||||||
| PV UFCF | 357.29 | 306.52 | 311.43 | 316.41 | 321.48 | |||||
| SUM PV UFCF | 1,613.13 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.17 |
| Free cash flow (t + 1) | 442.34 |
| Terminal Value | 10,607.69 |
| Present Value of Terminal Value | 7,863.43 |
Intrinsic Value
| Enterprise Value | 9,476.55 |
|---|---|
| Net Debt | 1,774.30 |
| Equity Value | 7,702.25 |
| Shares Outstanding | 111.62 |
| Equity Value Per Share | 69.01 |