Discounted Cash Flow (DCF) Analysis Unlevered

Sierra Wireless, Inc. (SW.TO)

$39.81

+0.44 (+1.12%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.45 | 39.81 | 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 692.08793.60713.51448.59473.21441.19411.34383.51357.56333.37
Revenue (%)
EBITDA 37.9215.61-26.18-28.09-59.98-13.38-12.47-11.63-10.84-10.11
EBITDA (%)
EBIT 7.42-23.54-59.35-60.43-88.70-37.44-34.90-32.54-30.34-28.29
EBIT (%)
Depreciation 30.5039.1533.1832.3428.7224.0622.4320.9219.5018.18
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 6589.0875.45160.5676.7873.4268.4663.8259.5155.48
Total Cash (%)
Account Receivables 168.50171.72131.4368.5885.3186.2380.3974.9569.8865.16
Account Receivables (%)
Inventories 53.0350.7854.2932.8282.1840.9038.1335.5533.1530.90
Inventories (%)
Accounts Payable 94.7794.0775.0667.25108.7465.3360.9156.7952.9549.36
Accounts Payable (%)
Capital Expenditure -15.81-21.10-20.27-21.97-19.98-14.92-13.91-12.97-12.09-11.27
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 39.81
Beta 1.487
Diluted Shares Outstanding 37.12
Cost of Debt
Tax Rate -0.33
After-tax Cost of Debt 1.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.617
Total Debt 27.12
Total Equity 1,477.71
Total Capital 1,504.83
Debt Weighting 1.80
Equity Weighting 98.20
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 692.08793.60713.51448.59473.21441.19411.34383.51357.56333.37
EBITDA 37.9215.61-26.18-28.09-59.98-13.38-12.47-11.63-10.84-10.11
EBIT 7.42-23.54-59.35-60.43-88.70-37.44-34.90-32.54-30.34-28.29
Tax Rate 43.03%-3.87%-18.32%39.87%-0.33%12.08%12.08%12.08%12.08%12.08%
EBIAT 4.23-24.45-70.23-36.34-88.99-32.92-30.69-28.61-26.68-24.87
Depreciation 30.5039.1533.1832.3428.7224.0622.4320.9219.5018.18
Accounts Receivable --3.2240.2962.86-16.73-0.925.835.445.074.73
Inventories -2.25-3.5121.48-49.3641.282.772.582.412.24
Accounts Payable --0.71-19.01-7.8141.49-43.41-4.42-4.12-3.84-3.58
Capital Expenditure -15.81-21.10-20.27-21.98-19.98-14.92-13.91-12.97-12.09-11.27
UFCF 18.92-8.08-39.5550.56-104.86-26.82-17.98-16.77-15.63-14.57
WACC
PV UFCF -24.28-14.74-12.44-10.50-8.87
SUM PV UFCF -70.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.45
Free cash flow (t + 1) -14.86
Terminal Value -175.91
Present Value of Terminal Value -107.02

Intrinsic Value

Enterprise Value -177.86
Net Debt -49.66
Equity Value -128.19
Shares Outstanding 37.12
Equity Value Per Share -3.45