Discounted Cash Flow (DCF) Analysis Unlevered

Select Energy Services, Inc. (WTTR)

$8.225

-0.10 (-1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: -9.94 | 8.225 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,291.59605.11764.621,387.421,585.351,858.552,178.822,554.282,994.453,510.47
Revenue (%)
EBITDA 150.98-8.3528.49160.05214.93145.44170.51199.89234.34274.72
EBITDA (%)
EBIT 30.31-110.02-63.9744.3473.84-60.77-71.24-83.52-97.91-114.78
EBIT (%)
Depreciation 120.67101.6792.46115.72141.09206.21241.75283.41332.25389.50
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 79.27169.0485.807.3257.08183.71215.37252.48295.99346.99
Total Cash (%)
Account Receivables 272.30129.46233.04435.07322.78463.43543.29636.91746.66875.33
Account Receivables (%)
Inventories 37.5433.3844.4641.1638.6573.0185.60100.35117.64137.91
Inventories (%)
Accounts Payable 86.0234.8790.04132.3146.67136.34159.83187.38219.67257.52
Accounts Payable (%)
Capital Expenditure -110.14-21.24-39.99-71.88-135.87-115.30-135.17-158.47-185.77-217.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.225
Beta 1.658
Diluted Shares Outstanding 103.37
Cost of Debt
Tax Rate -257.31
After-tax Cost of Debt 8.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.957
Total Debt 53.55
Total Equity 850.18
Total Capital 903.72
Debt Weighting 5.92
Equity Weighting 94.08
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,291.59605.11764.621,387.421,585.351,858.552,178.822,554.282,994.453,510.47
EBITDA 150.98-8.3528.49160.05214.93145.44170.51199.89234.34274.72
EBIT 30.31-110.02-63.9744.3473.84-60.77-71.24-83.52-97.91-114.78
Tax Rate 32.03%0.37%-0.30%14.89%-257.31%-42.06%-42.06%-42.06%-42.06%-42.06%
EBIAT 20.60-109.62-64.1637.74263.83-86.33-101.21-118.65-139.10-163.07
Depreciation 120.67101.6792.46115.72141.09206.21241.75283.41332.25389.50
Accounts Receivable -142.84-103.58-202.03112.29-140.64-79.86-93.62-109.75-128.67
Inventories -4.16-11.073.292.51-34.36-12.58-14.75-17.29-20.27
Accounts Payable --51.1555.1742.27-85.6489.6723.4927.5432.2937.85
Capital Expenditure -110.14-21.24-39.99-71.88-135.87-115.30-135.17-158.47-185.77-217.79
UFCF 31.1366.67-71.19-74.90298.22-80.76-63.58-74.54-87.38-102.44
WACC
PV UFCF -72.28-50.93-53.44-56.07-58.83
SUM PV UFCF -291.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.73
Free cash flow (t + 1) -106.02
Terminal Value -1,288.26
Present Value of Terminal Value -739.87

Intrinsic Value

Enterprise Value -1,031.42
Net Debt -3.54
Equity Value -1,027.88
Shares Outstanding 103.37
Equity Value Per Share -9.94