Discounted Cash Flow (DCF) Analysis Unlevered
TeraGo Inc. (TGO.TO)
$3.4
+0.17 (+5.26%)
All numbers are in Millions, Currency in USD
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 | 55.39 | 54.30 | 48.44 | 45.45 | 43.30 | 40.74 | 38.33 | 36.06 | 33.93 | 31.92 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 8.73 | 9.25 | 13.06 | 11.33 | 3.28 | 7.52 | 7.07 | 6.65 | 6.26 | 5.89 |
| EBITDA (%) | ||||||||||
| EBIT | -5.60 | -2.51 | -2.23 | -3.48 | -11.28 | -4.32 | -4.06 | -3.82 | -3.60 | -3.38 |
| EBIT (%) | ||||||||||
| Depreciation | 14.32 | 11.76 | 15.29 | 14.81 | 14.55 | 11.84 | 11.14 | 10.48 | 9.86 | 9.27 |
| 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 | 6.99 | 3.92 | 8.69 | 5.86 | 5.48 | 5.16 | 4.85 | 4.57 | 4.30 | 4.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 3.39 | 3.64 | 2.91 | 2.58 | 2.80 | 2.52 | 2.37 | 2.23 | 2.10 | 1.98 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -9.24 | -13.03 | -6.73 | -7.62 | -7.38 | -7.20 | -6.78 | -6.38 | -6 | -5.64 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 3.4 |
|---|---|
| Beta | 0.320 |
| Diluted Shares Outstanding | 107.49 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 10.85% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.151 |
| Total Debt | 35.91 |
| Total Equity | 365.45 |
| Total Capital | 401.37 |
| Debt Weighting | 8.95 |
| Equity Weighting | 91.05 |
| 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 | 55.39 | 54.30 | 48.44 | 45.45 | 43.30 | 40.74 | 38.33 | 36.06 | 33.93 | 31.92 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 8.73 | 9.25 | 13.06 | 11.33 | 3.28 | 7.52 | 7.07 | 6.65 | 6.26 | 5.89 |
| EBIT | -5.60 | -2.51 | -2.23 | -3.48 | -11.28 | -4.32 | -4.06 | -3.82 | -3.60 | -3.38 |
| Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| EBIAT | -5.60 | -2.51 | -2.23 | -3.48 | -11.28 | -4.32 | -4.06 | -3.82 | -3.60 | -3.38 |
| Depreciation | 14.32 | 11.76 | 15.29 | 14.81 | 14.55 | 11.84 | 11.14 | 10.48 | 9.86 | 9.27 |
| Accounts Receivable | - | -0.25 | 0.73 | 0.33 | -0.22 | 0.28 | 0.15 | 0.14 | 0.13 | 0.12 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -9.24 | -13.03 | -6.73 | -7.62 | -7.38 | -7.20 | -6.78 | -6.38 | -6 | -5.64 |
| UFCF | -0.52 | -4.04 | 7.07 | 4.04 | -4.32 | 0.59 | 0.45 | 0.42 | 0.39 | 0.37 |
| WACC | ||||||||||
| PV UFCF | 0.56 | 0.40 | 0.36 | 0.32 | 0.28 | |||||
| SUM PV UFCF | 1.91 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.66 |
| Free cash flow (t + 1) | 0.38 |
| Terminal Value | 10.34 |
| Present Value of Terminal Value | 7.85 |
Intrinsic Value
| Enterprise Value | 9.76 |
|---|---|
| Net Debt | 30.43 |
| Equity Value | -20.67 |
| Shares Outstanding | 107.49 |
| Equity Value Per Share | -0.19 |