Assistance with an ER report - Dollarama
I am looking to get assistance on finding out the Cost of Debt for a Canadian Company - Dollarama so that I can ultimately calculate the WACC(Weighted Average Cost of Capital).
Since I am new to creating an Equity Research report. I was struggling to find the right kind of data from the Audited Financial Statement 2023
I would really appreciate if one of you could assist me in finding the 1) Total Debt and the 2)Total Interest Expense as the way it’s presented in the Annual Statement is confusing to me. I wanted to share page numbers, but I am unsure which sections to take as truth as there is wide variances from the presented figures when I try to sum the values myself.
Since I am new, I have not been able to link the company's most recent audited financial statement to this post, which is what I've been using to gather my data to calculate the WACC. To see the Audited Financial Statement please go to sedarplus website and use this number '03510405' in the search bar for the 'filings number' which will lead you to Dollarama Inc's Audited Annual financial statement English pdf with a submission date of 29 Mar 2023.
It would be really kind of someone to look at this and let me know if I am missing something.
Thank you in advance, this is my first post, so please pardon me if I missed anything.
What even is this for? School or work?
none. I am trying to build a model on my own for the first time.
.
Not going to do it for you, but annual interest (excl any revolver commitment interest) / total market value of bonds outstanding. You can mv if bonds on bbg or fidelity, E*Trade, etc.
Or just come up with a tp a little higher or lower then back in your discount rate
This is the easy part which I wasn't really finding that challenging. My main concern area is the way the data is presented in the annual report. For instance, in the I/S there is a section which states "Financing costs' which is deducted before getting EBT. Further inspection of Financing cost show that it includes banking fees and interest expense on debt and liabilities. With no segregation with how much banking fees account for anywhere in the annual report. A total figure of $112,645 is captures in this category.
Then digging into Cash Flows, under operating cashflow - Interest paid on LT and ST borrowing captures 64,180. The calculation of this interest expense is also not made in the notes.
Am I to assume that the actual interest expense is just 64,180, and the balance of 48,465 (i.e. 112645 - 64180) is banking fees? Which is why I cannot seem to get which figure is most apt to include for my calculations.
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