Discounted Cash Flow (DCF) Analysis Unlevered

Sierra Wireless, Inc. (SW.TO)

$41.99

+0.20 (+0.48%)
All numbers are in Millions, Currency in USD
Stock DCF: -1.99 | 41.99 | 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 37.9215.61-26.18-28.09-60.29-13.43-12.53-11.68-10.89-10.15
EBITDA (%)
EBIT 7.42-23.54-59.35-60.43-89.01-37.50-34.96-32.59-30.39-28.33
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 94.7794.0775.0653.9356.8953.0449.4546.1142.9940.08
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 $ 41.99
Beta 1.575
Diluted Shares Outstanding 36.17
Cost of Debt
Tax Rate -0.33
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.240
Total Debt 24.92
Total Equity 1,518.61
Total Capital 1,543.53
Debt Weighting 1.61
Equity Weighting 98.39
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 37.9215.61-26.18-28.09-60.29-13.43-12.53-11.68-10.89-10.15
EBIT 7.42-23.54-59.35-60.43-89.01-37.50-34.96-32.59-30.39-28.33
Tax Rate 43.03%-3.87%-18.32%39.87%-0.33%12.08%12.08%12.08%12.08%12.08%
EBIAT 4.23-24.45-70.23-36.34-89.30-32.97-30.74-28.66-26.72-24.91
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 --0.71-19.01-21.132.96-3.85-3.59-3.35-3.12-2.91
Capital Expenditure -15.81-21.10-20.27-21.98-19.98-14.92-13.91-12.97-12.09-11.27
UFCF 18.92-8.08-39.5537.24-143.7112.69-17.20-16.03-14.95-13.94
WACC
PV UFCF 11.42-13.92-11.68-9.80-8.22
SUM PV UFCF -32.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.14
Free cash flow (t + 1) -14.22
Terminal Value -155.55
Present Value of Terminal Value -91.73

Intrinsic Value

Enterprise Value -123.94
Net Debt -51.86
Equity Value -72.07
Shares Outstanding 36.17
Equity Value Per Share -1.99