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Discounted Cash Flow (DCF) Analysis Unlevered


Nabors Industries Ltd.

Nabors Industries Ltd. (NBR)

Energy

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 6,248.636,809.763,791.672,006.932,565.263,047.792,829.872,627.532,439.672,265.232,103.27
Revenue (%)
EBITDA 1,407.82718.43684.40-156.94438.66533.97367.60341.32316.91294.25273.21
EBITDA (%)
EBIT 308.06-429.70-288.93-1,031.16-406.85-334.65-411.18-381.78-354.48-329.14-305.60
EBIT (%)
Depreciation 1,099.761,148.13973.32874.22845.51868.62778.78723.10671.40623.39578.82
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 507.39535.93274.52295.22365.29481.86320.62297.70276.41256.65238.30
Total Cash (%)
Account Receivables 1,399.691,517.21784.50508.36698.52756.46673.23625.09580.40538.90500.37
Account Receivables (%)
Inventories 209.95230.17153.94103.56166.23165.49131.59122.18113.44105.3397.80
Inventories (%)
Accounts Payable 545.51780.40271.86264.51363.50392.86318.93296.12274.95255.29237.04
Accounts Payable (%)
Capital Expenditure -1,178.49-1,821.61-867.16-395.37-574.36-459.00-592.57-550.21-510.87-474.34-440.42
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.47
Diluted Shares Outstanding 334.40
Cost of Debt
Tax Rate -14.11
After-tax Cost of Debt 0.76
Risk-Free Rate
Market Risk Premium
Cost of Equity 21.07
Total Debt 3,585.88
Total Equity 825.96
Total Capital 4,411.84
Debt Weighting 81.28
Equity Weighting 18.72
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 6,248.636,809.763,791.672,006.932,565.263,047.792,829.872,627.532,439.672,265.232,103.27
EBITDA 1,407.82718.43684.40-156.94438.66533.97367.60341.32316.91294.25273.21
EBIT 308.06-429.70-288.93-1,031.16-406.85-334.65-411.18-381.78-354.48-329.14-305.60
Tax Rate -65.07%-10.31%20.83%15.36%13.17%-14.11%-6.69%-6.69%-6.69%-6.69%-6.69%
EBIAT 508.51-473.98-228.75-872.80-353.25-381.88-438.68-407.32-378.19-351.15-326.05
Depreciation 1,099.761,148.13973.32874.22845.51868.62778.78723.10671.40623.39578.82
Accounts Receivable --117.52732.72276.14-190.16-57.9483.2348.1444.6941.5038.53
Inventories --20.2276.2350.38-62.670.7333.919.418.748.117.53
Accounts Payable -234.89-508.54-7.3598.9829.36-73.93-22.80-21.17-19.66-18.25
Capital Expenditure -643.12-954.45-471.79179.00-115.37133.58-42.37-39.34-36.53-33.92
UFCF 1,608.271,414.4290.53-151.20517.40343.53516.88308.15286.12265.66246.67
WACC
PV UFCF 476.04261.38223.51191.13163.44
SUM PV UFCF 3,998.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.58
Free cash flow (t + 1) 256.53
Terminal Value 5,601.18
Present Value of Terminal Value 3,711.34

Intrinsic Value

Enterprise Value 7,709.42
Net Debt 3,104.03
Equity Value 4,605.39
Shares Outstanding 334.40
Equity Value Per Share 13.77