Discounted Cash Flow (DCF) Analysis Unlevered

Sleep Country Canada Holdings Inc. (ZZZ.TO)

$22.87

+0.39 (+1.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 64.47 | 22.87 | 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 101.37152.57165.91197.75223.72216.36239.66265.47294.06325.73
EBITDA (%)
EBIT 86.5598.12109.03137.03158.08152.18168.57186.72206.83229.11
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 $ 22.87
Beta 1.516
Diluted Shares Outstanding 36.65
Cost of Debt
Tax Rate 24.36
After-tax Cost of Debt 2.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.755
Total Debt 412.86
Total Equity 838.14
Total Capital 1,251
Debt Weighting 33.00
Equity Weighting 67.00
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 101.37152.57165.91197.75223.72216.36239.66265.47294.06325.73
EBIT 86.5598.12109.03137.03158.08152.18168.57186.72206.83229.11
Tax Rate 27.46%28.07%24.64%27.28%24.36%26.36%26.36%26.36%26.36%26.36%
EBIAT 62.7870.5882.1799.64119.58112.06124.13137.50152.31168.71
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 50.4386.93136.37117.21157.11144.60152.47168.89187.08207.23
WACC
PV UFCF 132.89128.78131.10133.46135.87
SUM PV UFCF 662.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.81
Free cash flow (t + 1) 211.38
Terminal Value 3,103.91
Present Value of Terminal Value 2,035

Intrinsic Value

Enterprise Value 2,697.11
Net Debt 334.55
Equity Value 2,362.56
Shares Outstanding 36.65
Equity Value Per Share 64.47