Quick DCF for MJSHi there, I used the DCF template of SP Capital IQ and tried to see would come out of it. I changed I few assuptions but here are the results.
| WACC | | | | | | | |
| | | | | | | | |
| Market Risk Premium (Rm - Rf) | | | | | 5.9% |
| Multiplied by: TSXV:MJS Bottom-Up Beta | | | | | 1.078 |
| Adjusted Market Risk Premium | | | | | 6.4% |
| Add: Risk-Free Rate of Return (Rf)(1) | | | | | 5.1% |
| Add: Size Premium | | | | | | 3.4% |
| Cost of Equity | | | | | | 14.9% |
| Multiplied by: TSXV:MJS E/(D+P+E) | | | | | 93.9% |
| Cost of Equity Portion | | | | | | 14.0% |
| | | | | | | | |
| TSXV:MJS Cost of Debt (Rd) - Average of Last 5 Issued Bonds | | | 0.0% |
| Tax Rate (5 Year Average) | | | | | | 26.5% |
| After-Tax Cost of Debt | | | | | | 0.0% |
| Multiplied by: TSXV:MJS D/(D+P+E) | | | | | 6.1% |
| Cost of Debt Portion | | | | | | 0.0% |
| | | | | | | | |
| TSXV:MJS Cost of Preferred (Rp) | | | | | 0.0% |
| Multiplied by: TSXV:MJS P/(D+P+E) | | | | | 0.0% |
| Cost of Preferred Portion | | | | | | 0.0% |
| | | | | | | | |
| WACC | | | | | | | 14.0% |
| PROJECTED CASH FLOWS | | | | | | | | | | | | | | |
| (CAD in millions, except per share data) | | | | 996 | 997 | 998 | 999 | 1000 | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Fiscal Year Ending December | CAGR |
| | | | | | | 2019 | 2020 | 2021 | 2022 | 2023 | 2024E | 2025E | 2026E | 2027E | 2028E | 2024-2028 |
| Total Revenue | | | | | 43.9 | 71.2 | 52.3 | 86.3 | 74.8 | 83.8 | 93.8 | 105.1 | 117.7 | 131.8 | 12.0% |
| Annual Growth | | | | | | 62.1% | (26.6%) | 65.1% | (13.3%) | 12.0% | 12.0% | 12.0% | 12.0% | 12.0% | |
| Cost of Revenue | | | | | 20.4 | 22.8 | 17.2 | 28.1 | 27.6 | 30.9 | 34.6 | 38.7 | 43.4 | 48.6 | |
| Margin | | | | | | 46.4% | 32.1% | 32.9% | 32.6% | 36.8% | 36.8% | 36.8% | 36.8% | 36.8% | 36.8% | |
| EBITDA | | | | | | 16.3 | 39.6 | 28.1 | 46.5 | 33.7 | 37.7 | 42.2 | 47.3 | 53.0 | 59.3 | 12.0% |
| Annual Growth | | | | | | 141.9% | (29.0%) | 65.6% | (27.6%) | 12.0% | 12.0% | 12.0% | 12.0% | 12.0% | |
| Margin | | | | | | 37.2% | 55.6% | 53.7% | 53.9% | 45.0% | 45.0% | 45.0% | 45.0% | 45.0% | 45.0% | |
| Less: Depreciation and Amortization | | | | 9.0 | 7.8 | 5.9 | 9.7 | 9.1 | 10.5 | 13.1 | 16.2 | 19.7 | 24.0 | 22.8% |
| % of Capital Expenditure | | | | 712.1% | 32.7% | 48.9% | 95.5% | 61.5% | 69.2% | 76.9% | 84.6% | 92.3% | 100.0% | |
| EBIT | | | | | | 7.4 | 31.8 | 22.1 | 36.9 | 24.6 | 27.2 | 29.1 | 31.1 | 33.2 | 35.4 | 6.8% |
| Annual Growth | | | | | | 329.8% | (30.4%) | 66.5% | (33.2%) | 10.4% | 7.2% | 7.0% | 6.7% | 6.5% | |
| Margin | | | | | | 16.9% | 44.7% | 42.4% | 42.7% | 32.9% | 32.4% | 31.0% | 29.6% | 28.2% | 26.8% | |
| Less: Income Taxes | | | 26.5% | | (2.0) | (8.4) | (5.9) | (9.8) | (6.5) | (7.2) | (7.7) | (8.3) | (8.8) | (9.4) | |
| Unlevered Net Income | | | | | 5.4 | 23.4 | 16.3 | 27.1 | 18.1 | 20.0 | 21.4 | 22.9 | 24.4 | 26.0 | 6.8% |
| Plus: Depreciation and Amortization | | | | 9.0 | 7.8 | 5.9 | 9.7 | 9.1 | 10.5 | 13.1 | 16.2 | 19.7 | 24.0 | |
| Less: Capital Expenditure | | | | | (1.3) | (23.7) | (12.2) | (10.1) | (14.7) | (15.2) | (17.0) | (19.1) | (21.4) | (24.0) | 12.0% |
| Margin | | | | | | (2.9%) | (33.3%) | (23.3%) | (11.7%) | (19.7%) | (18.2%) | (18.2%) | (18.2%) | (18.2%) | (18.2%) | |
| Less: Additions to Intangibles | | | | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Less: Increase in Working Capital | | | | (3.2) | 17.0 | (1.4) | 1.5 | 1.3 | 2.9 | 3.2 | 3.6 | 4.1 | 4.6 | 12.0% |
| Margin | | | | | | (7.3%) | 23.9% | (2.8%) | 1.7% | 1.7% | 3.5% | 3.5% | 3.5% | 3.5% | 3.5% | |
| Unlevered Free Cash Flow | | | | | 9.9 | 24.4 | 8.6 | 28.1 | 13.7 | 18.2 | 20.7 | 23.6 | 26.9 | 30.6 | 13.9% |
| Annual Growth | | | | | | 145.7% | (64.7%) | 227.0% | (51.1%) | 32.3% | 13.9% | 13.9% | 13.8% | 13.8% | |
| | | | | | | | | | | | | | | | | |
| Discount Factor - End-of-Period Convention | | | | | | | | | 0.28 | 1.28 | 2.28 | 3.28 | 4.28 | |
| PV of Yearly Cash Flows | | | | | | | | | | 5.0 | 17.5 | 17.5 | 17.5 | 17.5 | |
| Present Value of Equity at 09/17/2024 | | | | | | | |
| | | | | | | | | % of TEV | % of MVE |
| PV of 2024 Free Cash Flow Stub(1) | | | | | 5.0 | 4.6% | 2.9% |
| PV of 2025-2028 Free Cash Flows(1) | | | | | 70.0 | 64.3% | 40.3% |
| PV of Terminal Value(1) | | | | | | 33.9 | 31.1% | 19.5% |
| Enterprise Value | | | | | | 108.8 | 100.0% | 62.7% |
| Less: | | | | | | | | | |
| | Total Debt | | | | | | (5.8) | | (3.3%) |
| | Preferred Stock | | | | | 0.0 | | 0.0% |
| | Minority Interest | | | | | (70.6) | | (40.7%) |
| Plus: | | | | | | | | | |
| | Cash and Equivalents | | | | | 141.3 | | 81.3% |
| Equity Value | | | | | | | 173.7 | | 100.0% |
| | | | | | | | | | |
| Shares Outstanding | | | | | | 1,042.7 | | |
| Implied Per Share Value | | | | | | 0.167 | | |
| Current Price | | | | | | 0.085 | | |
| Premium/(Discount) to Current Price | | | | | 96.0% | | |