Discounted Cash Flow (DCF) Analysis Unlevered

Sleep Country Canada Holdings Inc. (ZZZ.TO)

$26.84

+0.47 (+1.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 65.57 | 26.84 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 622.98712.37757.70920.19928.661,028.671,139.451,262.161,398.091,548.66
Revenue (%)
EBITDA 101.37150.15158.44197.97226.87214.38237.47263.05291.37322.75
EBITDA (%)
EBIT 86.5595.70101.57137.24161.24150.20166.38184.30204.15226.13
EBIT (%)
Depreciation 14.8254.4556.8760.7365.6364.1871.0978.7587.2396.62
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 29.9944.0438.3236.5578.3258.5564.8571.8479.5788.14
Total Cash (%)
Account Receivables 13.1220.909.6716.6814.3019.8922.0324.4127.0329.95
Account Receivables (%)
Inventories 54.7365.3668.7291.5498.6997.94108.49120.17133.11147.45
Inventories (%)
Accounts Payable 28.5344.3051.4162.2156.1162.5269.2576.7184.9794.12
Accounts Payable (%)
Capital Expenditure -27.17-35.45-17.66-24.12-17.22-33.22-36.79-40.75-45.14-50.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 26.84
Beta 1.551
Diluted Shares Outstanding 37.21
Cost of Debt
Tax Rate 24.36
After-tax Cost of Debt 2.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.930
Total Debt 412.86
Total Equity 998.66
Total Capital 1,411.53
Debt Weighting 29.25
Equity Weighting 70.75
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 622.98712.37757.70920.19928.661,028.671,139.451,262.161,398.091,548.66
EBITDA 101.37150.15158.44197.97226.87214.38237.47263.05291.37322.75
EBIT 86.5595.70101.57137.24161.24150.20166.38184.30204.15226.13
Tax Rate 27.46%28.07%24.64%27.28%24.36%26.36%26.36%26.36%26.36%26.36%
EBIAT 62.7868.8476.5499.80121.97110.61122.52135.71150.33166.52
Depreciation 14.8254.4556.8760.7365.6364.1871.0978.7587.2396.62
Accounts Receivable --7.7811.23-7.012.38-5.59-2.14-2.37-2.63-2.91
Inventories --10.63-3.36-22.82-7.150.75-10.55-11.68-12.94-14.34
Accounts Payable -15.777.1110.80-6.106.416.737.468.269.15
Capital Expenditure -27.17-35.45-17.66-24.12-17.22-33.22-36.79-40.75-45.14-50.01
UFCF 50.4385.20130.75117.36159.50143.14150.86167.11185.11205.04
WACC
PV UFCF 131.86128.01130.61133.27135.98
SUM PV UFCF 659.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.56
Free cash flow (t + 1) 209.14
Terminal Value 3,188.12
Present Value of Terminal Value 2,114.39

Intrinsic Value

Enterprise Value 2,774.13
Net Debt 334.55
Equity Value 2,439.58
Shares Outstanding 37.21
Equity Value Per Share 65.57