Bank of Montreal (BMO.TO) Discounted Free Cash Flow - Perpetuity

Bank of Montreal

BMO.TO (TSX)

Valuation
Bank of Montreal Discounted Free Cash Flow - Perpetuity

"""
    Model: Discounted Free Cash Flow - Perpetuity

# Render model description
model.render_description(r"""
## Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our [GitHub Model Documentation](https://github.com/DiscountingCashFlows/Documentation/blob/main/models-documentation/discounted-free-cash-flow.md#discounted-free-cash-flow-model-source-code)
""")

# Initialize assumptions
assumptions.init({
    "data": {
        "%discount_rate": None,
        "beta": data.get("profile:beta", default=1),
        "%risk_free_rate": data.get("treasury:year10"),
        "%market_premium": data.get("risk:totalEquityRiskPremium"),
        "%tax_rate": None,
        "%growth_in_perpetuity": "2.5%",
        "historical_years": 10,
        "projection_years": 5,
        "%revenue_growth_rate": None,
        "%operating_cash_flow_margin": None,
        "%capital_expenditure_margin": None,
    },
    "hierarchies": [{
        "parent": "%discount_rate",
        "children": [
            "beta",
            "%risk_free_rate",
            "%market_premium",
            "%tax_rate"
        ]
    }]
})

# WACC Calculation
risk_free_rate = assumptions.get("%risk_free_rate")
beta = assumptions.get("beta")
market_premium = assumptions.get("%market_premium")
cost_of_equity = risk_free_rate + beta * market_premium
cost_of_debt = data.get("income:interestExpense / balance:totalDebt")
if cost_of_debt is None:
    # Use the 10-year Treasury yield instead
    cost_of_debt = data.get("treasury:year10")

tax_rate = data.get("income:incomeTaxExpense / income:incomeBeforeTax")
if tax_rate is None or tax_rate < 0:
    # Fall back to the statutory corporate rate
    tax_rate = data.get("risk:corporateTaxRate")
assumptions.set("%tax_rate", tax_rate)

market_cap = data.get("profile:price * income:weightedAverageShsOut")
debt_weight = data.get(f"balance:totalDebt / ({market_cap} + balance:totalDebt)")
if debt_weight is None:
    # Assume zero leverage if missing
    debt_weight = 0

equity_weight = 1 - debt_weight
wacc = debt_weight * cost_of_debt * (1 - assumptions.get("%tax_rate")) + equity_weight * cost_of_equity

# Set the discount rate to the WACC
assumptions.set("%discount_rate", wacc)

data.compute({
    "%operatingCashFlowMargin": "flow:operatingCashFlow / income:revenue",
    "positiveCapitalExpenditure": "-1 * flow:capitalExpenditure",
    "%capitalExpenditureMargin": "positiveCapitalExpenditure / income:revenue",
    "%grossMargin": "income:grossProfit / income:revenue",
    "%operatingMargin": "income:operatingIncome / income:revenue",
    "%netMargin": "income:netIncome / income:revenue",
    "discountedFreeCashFlow": "flow:freeCashFlow",
    "%revenueGrowthRate": "function:growth:income:revenue",
})

data.set_default_range(f"{-assumptions.get('historical_years')}->0")

assumptions.set("%revenue_growth_rate", data.average("%revenueGrowthRate"))
# Limit revenue growth rate between 0% and 25%
assumptions.set_bounds(
    "%revenue_growth_rate", low=0, high="25%"
)

average_operating_cash_flow_margin = data.average("%operatingCashFlowMargin")
assumptions.set("%operating_cash_flow_margin", average_operating_cash_flow_margin)
# Limit OCF range from 0 to 100% (all revenue converted to OCF)
assumptions.set_bounds(
    "%operating_cash_flow_margin", low=0, high="100%"
)

average_capital_expenditure_margin = data.average("%capitalExpenditureMargin")
assumptions.set("%capital_expenditure_margin", average_capital_expenditure_margin)

# Limit CapEx range from 0 to 90% of OCF Margin
assumptions.set_bounds(
    "%capital_expenditure_margin",
    low=0,
    high=assumptions.get("%operating_cash_flow_margin")*.9
)

data.compute({
    "income:revenue": f"""
        income:revenue:-1 * 
        (1 + {assumptions.get('%revenue_growth_rate')})
    """,
    "%revenueGrowthRate": "function:growth:income:revenue",
    "flow:operatingCashFlow": f"""
        income:revenue * 
        {assumptions.get('%operating_cash_flow_margin')}
    """,
    "computedCapitalExpenditure": f"""
        income:revenue * 
        {assumptions.get('%capital_expenditure_margin')}
    """,
    "flow:freeCashFlow": "flow:operatingCashFlow - computedCapitalExpenditure",
    "positiveCapitalExpenditure": "flow:operatingCashFlow - flow:freeCashFlow",
    "discountedFreeCashFlow": f"""
        function:discount:flow:freeCashFlow 
        rate:{assumptions.get('%discount_rate')}
        continuous:true
    """,
    # Informational computations
    "%operatingCashFlowMargin": "flow:operatingCashFlow / income:revenue",
    "%capitalExpenditureMargin": "positiveCapitalExpenditure / income:revenue",
    "%freeCashFlowMargin": "flow:freeCashFlow / income:revenue",
    "#compoundedDiscountRate": f"""
        function:compound:1
        rate:{assumptions.get('%discount_rate')} 
        continuous:true
    """,
    "%compoundedDiscountRate": "#compoundedDiscountRate - 1",
}, forecast=assumptions.get("projection_years"))

# Calculating the Terminal Value
# TV = FCF * (1 + Growth in Perpetuity) / (Discount Rate - Growth in Perpetuity)
discount_rate = assumptions.get("%discount_rate")
growth_in_perpetuity = assumptions.get("%growth_in_perpetuity")
end_year = assumptions.get("projection_years")
terminal_value = data.get(f"""
    flow:freeCashFlow:{end_year} *
    (1 + {growth_in_perpetuity}) / ({discount_rate} - {growth_in_perpetuity})
""")

# Discount the terminal value into the present
tv_discount_rate = (1 + assumptions.get("%discount_rate")) ** assumptions.get('projection_years')
discounted_terminal_value = terminal_value / tv_discount_rate

# Get the sum between current date and projection years
discounted_free_cash_flow_sum = data.sum("discountedFreeCashFlow:1->*")

# Add all Discounted FCFs and the Discounted Terminal Value to calculate the enterprise value
enterprise_value = discounted_terminal_value + discounted_free_cash_flow_sum

# Equity value is calculated by adding cash and subtracting total debt from the enterprise value
equity_value = data.get(f"{enterprise_value} + balance:cashAndShortTermInvestments -  balance:totalDebt")

stock_value = equity_value / data.get("income:weightedAverageShsOut")

model.set_final_value({
    "value": stock_value,
    "units": '$'
})

fcf_5y_cagr = data.cagr(f"flow:freeCashFlow:-1->{assumptions.get('projection_years')}")
revenue_5y_cagr = data.cagr(f"income:revenue:-1->{assumptions.get('projection_years')}")

model.render_results([
    [terminal_value, "Terminal Value", "$"],
    [discounted_terminal_value, "Discounted Terminal Value", "$"],
    [discounted_free_cash_flow_sum, "Sum of Discounted Free Cash Flow", "$"],
    [enterprise_value, "Enterprise Value", "$"],
    [data.get("balance:cashAndCashEquivalents"), "Cash and Equivalents", "$"],
    [data.get("balance:totalDebt"), "Total Debt", "$"],
    [equity_value, "Equity Value", "$"],
    [data.get("income:weightedAverageShsOut"), "Shares Outstanding", "$"],
    [stock_value, "Estimated Value per Share", "$"],
    [data.get("treasury:year10"), "Yield of the U.S. 10 Year Treasury Note", "%"],
    [average_operating_cash_flow_margin, "Average Cash from Operating Activities Margin", "%"],
    [average_capital_expenditure_margin, "Average Capital Expenditure Margin", "%"],
    [cost_of_equity, "Cost of Equity", "%"],
    [equity_weight, "Equity Weight", "%"],
    [cost_of_debt, "Cost of Debt", "%"],
    [debt_weight, "Debt Weight", "%"],
    [revenue_5y_cagr, "Forecasted Revenue - 5 Year CAGR", "%"],
    [fcf_5y_cagr, "Forecasted Free Cash Flow - 5 Year CAGR", "%"],
])

model.render_chart({
    "data": {
        "income:revenue": "Revenue",
        "flow:operatingCashFlow": "Operating Cash Flow",
        "flow:freeCashFlow": "Free Cash Flow",
        "positiveCapitalExpenditure": "Capital Expenditure",
        "discountedFreeCashFlow": "Discounted Free Cash Flow"
    },
    "start": -assumptions.get("historical_years"),
    "end": "*",
    "properties": {
        "title": "Historical Values",
        "set_editable": [
            "income:revenue",
            "flow:operatingCashFlow",
            "flow:freeCashFlow"
        ],
        "hidden_keys": [
            "positiveCapitalExpenditure",
            "discountedFreeCashFlow"
        ],
        "width": "full"
    },
})

# Forecast table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "flow:operatingCashFlow": "Operating Cash Flow",
        "%operatingCashFlowMargin": "Operating Cash Flow Margin",
        "positiveCapitalExpenditure": "Capital Expenditure",
        "%capitalExpenditureMargin": "Capital Expenditure Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "%freeCashFlowMargin": "Free Cash Flow Margin",
        "%compoundedDiscountRate": "Compounded Discount Rate",
        "discountedFreeCashFlow": "Discounted Free Cash Flow",
    },
    "start": -1,
    "end": "*",
    "properties": {
        "title": "Forecast Data",
        "order": "ascending",
        "include_ltm": False,
        "number_format": "M",
        "width": "full"
    },
})

# Historical table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
        "flow:operatingCashFlow": "Cash from Operating Activities",
        "%operatingCashFlowMargin": "Cash from Operating Activities Margin",
        "positiveCapitalExpenditure": "Capital Expenditure",
        "%capitalExpenditureMargin": "Capital Expenditure Margin",
        "flow:freeCashFlow": "Free Cash Flow",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Data",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

assumptions.set_description({
    "%discount_rate": r"""
        ## Discount Rate
        
        `Discount Rate` = `Equity Weight` * `Cost of Equity` + `Debt Weight` * `Cost of Debt` * (1 - `Tax Rate`)
        
        Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
        
        [Read More](https://www.investopedia.com/terms/w/wacc.asp)
        
        ---
        
        ### Cost of Equity
        
        `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium`
        
        The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.
        
        [Read More](https://www.investopedia.com/terms/c/costofequity.asp#mntl-sc-block_1-0-20)
        
        ---
        
        ### Cost of Debt
        
        `Cost of Debt` = `Interest Expense` / `Total Debt`
        
        The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.
        
        [Read More](https://www.investopedia.com/terms/c/costofdebt.asp)
        
        ---
        
        ### Equity & Debt Weights
        
        `Debt Weight` = `Total Debt` / (`Market Capitalization` + `Total Debt`) = 1 - `Equity Weight`
        
        The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).
        
        ---
        
        ### Tax Rate
        
        `Tax Rate` = `Income Tax Expense` / `Income Before Tax`
        
        The overall tax rate paid by the company on its earned income.
    """,

"beta": r"""
        ## Beta
        
        Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.
    """,

"%risk_free_rate": r"""
        ## Risk-Free Rate
        
        The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.
    """,

"%tax_rate": r"""
        ## Tax Rate
        
        `Tax Rate` = `Income Tax Expense` / `Income Before Tax`
        
        This is the company’s **effective tax rate**, reflecting the average rate of tax actually paid on its pre-tax earnings (including all statutory, deferred, and non-recurring items).
        
        This rate is used to adjust the after-tax cost of debt, since interest expense is tax-deductible.
        
        ## Discount Rate
        
        `Discount Rate` =  
        `Debt Weight` × `Cost of Debt` × (1 − `Tax Rate`)  
        + `Equity Weight` × `Cost of Equity`
    """,

"%market_premium": r"""
        ## Market Premium
        
        The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.
    """,

"%growth_in_perpetuity": r"""
        ## Growth in Perpetuity
        
        The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.
    """,

"historical_years": r"""
        ## Historical Years
        
        The number of years of historical data used to calculate averages and trends for analysis.
    """,

"projection_years": r"""
        ## Projection Years
        
        The number of years into the future for which the analysis projects financial performance and metrics.
    """,

"%revenue_growth_rate": r"""
        ## Revenue Growth Rate
        
        The annual growth rate applied to projected revenue, starting from the second projection year onward.
    """,

"%operating_cash_flow_margin": r"""
        ## Operating Cash Flow Margin
        
        `Projected Operating Cash Flow` = `Projected Revenue` * `Operating Cash Flow Margin`
        
        This margin represents the percentage of revenue used to estimate future Operating Cash Flow.
    """,

"%capital_expenditure_margin": r"""
        ## Capital Expenditure Margin
        
        `Projected Free Cash Flow` = `Projected Operating Cash Flow` - `Projected Revenue` * `Capital Expenditure Margin`
        
        This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.
    """,
})

print(f"End of model.")

Estimated Value

CAD

Market Price CAD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our GitHub Model Documentation

Interactive Assumptions

Discount Rate Discount Rate `Discount Rate` = `Equity Weight` * `Cost of Equity` + `Debt Weight` * `Cost of Debt` * (1 - `Tax Rate`) Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt. Read More Cost of Equity `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium` The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula. Read More Cost of Debt `Cost of Debt` = `Interest Expense` / `Total Debt` The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans. Read More Equity & Debt Weights `Debt Weight` = `Total Debt` / (`Market Capitalization` + `Total Debt`) = 1 - `Equity Weight` The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt). Tax Rate `Tax Rate` = `Income Tax Expense` / `Income Before Tax` The overall tax rate paid by the company on its earned income.	%
↳ Beta Beta Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.	#
↳ Risk Free Rate Risk-Free Rate The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.	%
↳ Market Premium Market Premium The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.	%
↳ Tax Rate Tax Rate `Tax Rate` = `Income Tax Expense` / `Income Before Tax` This is the company’s effective tax rate, reflecting the average rate of tax actually paid on its pre-tax earnings (including all statutory, deferred, and non-recurring items). This rate is used to adjust the after-tax cost of debt, since interest expense is tax-deductible. Discount Rate `Discount Rate` = `Debt Weight` × `Cost of Debt` × (1 − `Tax Rate`) + `Equity Weight` × `Cost of Equity`	%
Growth In Perpetuity Growth in Perpetuity The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.	%
Historical Years Historical Years The number of years of historical data used to calculate averages and trends for analysis.	#
Projection Years Projection Years The number of years into the future for which the analysis projects financial performance and metrics.	#
Revenue Growth Rate Revenue Growth Rate The annual growth rate applied to projected revenue, starting from the second projection year onward.	%
Operating Cash Flow Margin Operating Cash Flow Margin `Projected Operating Cash Flow` = `Projected Revenue` * `Operating Cash Flow Margin` This margin represents the percentage of revenue used to estimate future Operating Cash Flow.	%
Capital Expenditure Margin Capital Expenditure Margin `Projected Free Cash Flow` = `Projected Operating Cash Flow` - `Projected Revenue` * `Capital Expenditure Margin` This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.	%

Results
Terminal Value	2,243 Bil. CAD
Discounted Terminal Value	1,521 Bil. CAD
Sum of Discounted Free Cash Flow	347.5 Bil. CAD
Enterprise Value	1,868 Bil. CAD
Cash and Equivalents	70.32 Bil. CAD
Total Debt	415.2 Bil. CAD
Equity Value	1,557 Bil. CAD
Shares Outstanding	713.3 Mil. CAD
Estimated Value per Share	2.18 Thou. CAD
Yield of the U.S. 10 Year Treasury Note	4.24%
Average Cash from Operating Activities Margin	67.48%
Average Capital Expenditure Margin	3.72%
Cost of Equity	9.41%
Equity Weight	24.47%
Cost of Debt	10.13%
Debt Weight	75.53%
Forecasted Revenue - 5 Year CAGR	19.64%
Forecasted Free Cash Flow - 5 Year CAGR	70.36%

Historical Values

Monetary values in CAD

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"x": "2026-10-31", "y": 63092088437, "oy": 63092088437, "e": true, "d": 2026, "g": 516.1, "og": 516.1}, {"l": "2027", "x": "2027-10-31", "y": 75483374606, "oy": 75483374606, "e": true, "d": 2027, "g": 19.64, "og": 19.64}, {"l": "2028", "x": "2028-10-31", "y": 90308309379, "oy": 90308309379, "e": true, "d": 2028, "g": 19.64, "og": 19.64}, {"l": "2029", "x": "2029-10-31", "y": 108044861341, "oy": 108044861341, "e": true, "d": 2029, "g": 19.64, "og": 19.64}, {"l": "2030", "x": "2030-10-31", "y": 129264872108, "oy": 129264872108, "e": true, "d": 2030, "g": 19.64, "og": 19.64}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "Free Cash Flow", "mappingKey": "flow:freeCashFlow", "data": [{"l": "2016", "x": "2016-10-31", "y": -3268000000}, {"l": "2017", "x": "2017-10-31", "y": 2117000000}, {"l": "2018", "x": "2018-10-31", "y": 17026000000}, {"l": "2019", "x": "2019-10-31", "y": 28175000000}, {"l": "2020", "x": "2020-10-31", "y": 49804000000}, {"l": "2021", "x": "2021-10-31", "y": 43066000000}, {"l": "2022", "x": "2022-10-31", "y": 3509000000}, {"l": "2023", "x": "2023-10-31", "y": 19592000000}, {"l": "2024", "x": "2024-10-31", "y": 27466000000}, {"l": "2025", "x": "2025-10-31", "y": 8511000000}, {"l": "2026", "x": "2026-10-31", "y": 59614917765, "oy": 59614917765, "e": true, "d": 2026, "g": 600.4, "og": 600.4}, {"l": "2027", "x": "2027-10-31", "y": 71323287615, "oy": 71323287615, "e": true, "d": 2027, "g": 19.64, "og": 19.64}, {"l": "2028", "x": "2028-10-31", "y": 85331181302, "oy": 85331181302, "e": true, "d": 2028, "g": 19.64, "og": 19.64}, {"l": "2029", "x": "2029-10-31", "y": 102090225310, "oy": 102090225310, "e": true, "d": 2029, "g": 19.64, "og": 19.64}, {"l": "2030", "x": "2030-10-31", "y": 122140745561, "oy": 122140745561, "e": true, "d": 2030, "g": 19.64, "og": 19.64}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "Capital Expenditure", "mappingKey": "positiveCapitalExpenditure", "data": [{"l": "2016", "x": "2016-10-31", "y": 620000000}, {"l": "2017", "x": "2017-10-31", "y": 791000000}, {"l": "2018", "x": "2018-10-31", "y": 886000000}, {"l": "2019", "x": "2019-10-31", "y": 1128000000}, {"l": "2020", "x": "2020-10-31", "y": 1032000000}, {"l": "2021", "x": "2021-10-31", "y": 983000000}, {"l": "2022", "x": "2022-10-31", "y": 1448000000}, {"l": "2023", "x": "2023-10-31", "y": 1677000000}, {"l": "2024", "x": "2024-10-31", "y": 1564000000}, {"l": "2025", "x": "2025-10-31", "y": 1729000000}, {"l": "2026", "x": "2026-10-31", "y": 3477170671}, {"l": "2027", "x": "2027-10-31", "y": 4160086991}, {"l": "2028", "x": "2028-10-31", "y": 4977128076}, {"l": "2029", "x": "2029-10-31", "y": 5954636030}, {"l": "2030", "x": "2030-10-31", "y": 7124126546}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": true}, {"label": "Discounted Free Cash Flow", "mappingKey": "discountedFreeCashFlow", "data": [{"l": "2016", "x": "2016-10-31", "y": -3268000000}, {"l": "2017", "x": "2017-10-31", "y": 2117000000}, {"l": "2018", "x": "2018-10-31", "y": 17026000000}, {"l": "2019", "x": "2019-10-31", "y": 28175000000}, {"l": "2020", "x": "2020-10-31", "y": 49804000000}, {"l": "2021", "x": "2021-10-31", "y": 43066000000}, {"l": "2022", "x": "2022-10-31", "y": 3509000000}, {"l": "2023", "x": "2023-10-31", "y": 19592000000}, {"l": "2024", "x": "2024-10-31", "y": 27466000000}, {"l": "2025", "x": "2025-10-31", "y": 8511000000}, {"l": "2026", "x": "2026-10-31", "y": 56152549085}, {"l": "2027", "x": "2027-10-31", "y": 62157352497}, {"l": "2028", "x": "2028-10-31", "y": 68789644480}, {"l": "2029", "x": "2029-10-31", "y": 76145825074}, {"l": "2030", "x": "2030-10-31", "y": 84288655945}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": true}], "editableDates": {"2026-10-31": 33, "2027-10-31": 34, "2028-10-31": 35, "2029-10-31": 36, "2030-10-31": 37}, "properties": {"display_table": true}, "width": "full"}

Edit Chart Values	2026-10-31	2027-10-31	2028-10-31	2029-10-31	2030-10-31

↳ Growth Rate

Forecast Data

Monetary values in CAD amounts except #	2025 Oct 31	2026 Oct 31	2027 Oct 31	2028 Oct 31	2029 Oct 31	2030 Oct 31
Revenue	78,149	93,497	111,860	133,830	160,114	191,560
Revenue Growth Rate	-0.521%	19.64%	19.64%	19.64%	19.64%	19.64%
Operating Cash Flow	10,240	63,092	75,483	90,308	108,045	129,265
Operating Cash Flow Margin	13.1%	67.48%	67.48%	67.48%	67.48%	67.48%
Capital Expenditure	1,729	3,477	4,160	4,977	5,955	7,124
Capital Expenditure Margin	2.21%	3.72%	3.72%	3.72%	3.72%	3.72%
Free Cash Flow	8,511	59,615	71,323	85,331	102,090	122,141
Free Cash Flow Margin	10.89%	63.76%	63.76%	63.76%	63.76%	63.76%
Compounded Discount Rate		6.17%	14.75%	24.05%	34.07%	44.91%
Discounted Free Cash Flow	8,511	56,153	62,157	68,790	76,146	84,289

Historical Data

Monetary values in CAD amounts except #	Average	LTM Jan 23	2025 Oct 31	2024 Oct 31	2023 Oct 31	2022 Oct 31	2021 Oct 31	2020 Oct 31	2019 Oct 31	2018 Oct 31	2017 Oct 31	2016 Oct 31
Revenue	39,118	78,149	78,149	78,558	29,021	26,259	26,909	22,233	25,332	22,870	21,874	20,947
Revenue Growth Rate	19.64%	0%	-0.521%	170.7%	10.52%	-2.42%	21.03%	-12.23%	10.77%	4.55%	4.42%	9.2%
Cost of Revenue	12,874	45,667	45,667	50,278	0	0	0	0	0	0	0	0
Gross Profit	26,526	32,482	32,482	28,280	29,642	25,946	26,909	25,025	25,332	22,870	21,874	20,947
Gross Margin	84.78%	41.56%	41.56%	36%	102.1%	98.81%	100%	112.6%	100%	100%	100%	100%
Operating Income	11,618	11,366	11,550	9,065	10,298	19,368	14,073	9,899	12,324	10,694	10,046	9,120
Operating Margin	39.25%	14.54%	14.78%	11.54%	35.48%	73.76%	52.3%	44.52%	48.65%	46.76%	45.93%	43.54%
Net Income	6,975	8,709	8,709	7,318	4,425	13,537	7,754	5,097	5,758	5,450	5,348	4,622
Net Margin	22.11%	11.14%	11.14%	9.31%	15.25%	51.55%	28.82%	22.93%	22.73%	23.83%	24.45%	22.07%
Cash from Operating Activities	19,827	10,240	10,240	29,030	21,269	4,957	44,049	50,836	29,303	17,912	2,908	-2,648
Cash from Operating Activities Margin	67.49%	13.1%	13.1%	36.95%	73.29%	18.88%	163.7%	228.7%	115.7%	78.32%	13.29%	-12.64%
Capital Expenditure	1,235	1,729	1,729	1,564	1,677	1,448	983	1,032	1,128	886	791	620
Capital Expenditure Margin	3.72%	2.21%	2.21%	1.99%	5.78%	5.51%	3.65%	4.64%	4.45%	3.87%	3.62%	2.96%
Free Cash Flow	18,592	8,511	8,511	27,466	19,592	3,509	43,066	49,804	28,175	17,026	2,117	-3,268