Discounted Cash Flow (DCF) Analysis Unlevered

Verso Corporation (VRS)

$26.99

+0.04 (+0.15%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.34 | 26.99 | 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 2,4612,6822,4441,3591,2781,117.46977.08854.34747.01653.17
Revenue (%)
EBITDA -3151644415093.3981.6671.4062.4354.59
EBITDA (%)
EBIT -204-19-109-4-4.20-3.68-3.21-2.81-2.46
EBIT (%)
Depreciation -11118315315497.6085.3474.6265.2457.05
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 7264213717259.2551.8145.3039.6134.63
Total Cash (%)
Account Receivables 2081971558310681.6771.4162.4454.5947.73
Account Receivables (%)
Inventories 385398395224127163.30142.78124.85109.1695.45
Inventories (%)
Accounts Payable 176215188809981.5671.3162.3654.5247.67
Accounts Payable (%)
Capital Expenditure -40-73-105-48-66-38.75-33.88-29.63-25.91-22.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 26.99
Beta 2.004
Diluted Shares Outstanding 34.23
Cost of Debt
Tax Rate 50.00
After-tax Cost of Debt 7.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.076
Total Debt 13
Total Equity 923.92
Total Capital 936.92
Debt Weighting 1.39
Equity Weighting 98.61
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 2,4612,6822,4441,3591,2781,117.46977.08854.34747.01653.17
EBITDA -3151644415093.3981.6671.4062.4354.59
EBIT -204-19-109-4-4.20-3.68-3.21-2.81-2.46
Tax Rate 21.05%0.00%557.14%8.18%50.00%127.28%127.28%127.28%127.28%127.28%
EBIAT -20486.86-100.08-21.1510.880.770.67
Depreciation -11118315315497.6085.3474.6265.2457.05
Accounts Receivable -114272-2324.3310.268.977.846.86
Inventories --13317197-36.3020.5117.9415.6813.71
Accounts Payable -39-27-10819-17.44-10.25-8.96-7.83-6.85
Capital Expenditure -40-73-105-48-66-38.75-33.88-29.63-25.91-22.65
UFCF -40279182.86139.9217930.5972.9863.8155.8048.79
WACC
PV UFCF 27.0757.1544.2234.2226.48
SUM PV UFCF 189.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 13.00
Free cash flow (t + 1) 49.76
Terminal Value 452.39
Present Value of Terminal Value 245.54

Intrinsic Value

Enterprise Value 434.68
Net Debt -159
Equity Value 593.68
Shares Outstanding 34.23
Equity Value Per Share 17.34