Discounted Cash Flow (DCF) Analysis Unlevered

TerraVest Industries Inc. (TVK.TO)

$24.79

-0.41 (-1.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.01 | 24.79 | undervalue

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 192.53269.93306.29304.25307.46349.01396.18449.72510.50579.49
Revenue (%)
EBITDA 24.4440.0748.58546557.4465.2074.0284.0295.37
EBITDA (%)
EBIT 14.7128.3236.8735.1345.7539.5144.8550.9157.7965.59
EBIT (%)
Depreciation 9.7311.7611.7118.8719.2517.9320.3623.1126.2329.78
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 10.571.409.4427.458.3614.5416.5118.7421.2724.14
Total Cash (%)
Account Receivables 40.6655.2353.0845.3963.6065.9874.8985.0196.50109.54
Account Receivables (%)
Inventories 46.6273.3883.6283.96136.85105.27119.49135.64153.97174.78
Inventories (%)
Accounts Payable 13.4021.7216.7212.4524.9822.8125.9029.4033.3737.88
Accounts Payable (%)
Capital Expenditure -9.59-11.61-17.63-10.67-19.08-17.28-19.61-22.26-25.27-28.69
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 24.79
Beta 0.612
Diluted Shares Outstanding 18.35
Cost of Debt
Tax Rate 20.48
After-tax Cost of Debt 1.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.485
Total Debt 190.61
Total Equity 454.95
Total Capital 645.56
Debt Weighting 29.53
Equity Weighting 70.47
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 192.53269.93306.29304.25307.46349.01396.18449.72510.50579.49
EBITDA 24.4440.0748.58546557.4465.2074.0284.0295.37
EBIT 14.7128.3236.8735.1345.7539.5144.8550.9157.7965.59
Tax Rate 21.48%23.13%27.32%24.39%20.48%23.36%23.36%23.36%23.36%23.36%
EBIAT 11.5521.7726.8026.5636.3830.2834.3739.0144.2950.27
Depreciation 9.7311.7611.7118.8719.2517.9320.3623.1126.2329.78
Accounts Receivable --14.572.157.69-18.21-2.37-8.92-10.12-11.49-13.04
Inventories --26.76-10.24-0.33-52.9031.59-14.23-16.15-18.33-20.81
Accounts Payable -8.31-5-4.2712.53-2.163.083.503.974.51
Capital Expenditure -9.59-11.61-17.63-10.67-19.07-17.28-19.61-22.26-25.27-28.69
UFCF 11.69-11.117.7837.84-22.0357.9915.0617.0919.4022.02
WACC
PV UFCF 55.1813.6314.7315.9117.18
SUM PV UFCF 116.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.09
Free cash flow (t + 1) 22.46
Terminal Value 726.98
Present Value of Terminal Value 567.17

Intrinsic Value

Enterprise Value 683.80
Net Debt 151.47
Equity Value 532.34
Shares Outstanding 18.35
Equity Value Per Share 29.01