|Relative Value||66% overvalued|
An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.6%.
The calculated WACC is 9.8%. This value is used as the default discount rate.
Assuming a growth rate of 11.6%, the cash flows for the next 5 years are projected.
The present value of each year's flow is adjusted to present value using the discount rate.
|Year||Future flow (billion)||Present value (billion)|
Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1670 billion. This corresponds to a present value of 953 billion.
The total present value of the projected cash flows is 384 billion. Adding in the terminal value gives a total present value of 1340 billion.
There are presently 16.2 billion outstanding shares, so the intrinsic value per share is 82.64.
The following data was to determine the past cash flows.
|Non-Cash Working Capital (NCWC)||-75,342,000,000|
|Change in NCWC||-36,489,000,000|
|Depreciation and Amortization||22,568,000,000|
|Unlevered Free Cash Flow||152,821,639,665|
|Non-Cash Working Capital (NCWC)||-38,853,000,000|
|Change in NCWC||-11,637,000,000|
|Depreciation and Amortization||11,056,000,000|
|Unlevered Free Cash Flow||48,833,858,162|
|Non-Cash Working Capital (NCWC)||-27,216,000,000|
|Change in NCWC||3,864,000,000|
|Depreciation and Amortization||12,547,000,000|
|Unlevered Free Cash Flow||59,653,105,131|
|Non-Cash Working Capital (NCWC)||-31,080,000,000|
|Change in NCWC||-3,203,000,000|
|Depreciation and Amortization||10,903,000,000|
|Unlevered Free Cash Flow||52,280,760,723|
|Non-Cash Working Capital (NCWC)||-27,877,000,000|
|Change in NCWC||-190,000,000|
|Depreciation and Amortization||10,157,000,000|
|Unlevered Free Cash Flow||43,452,075,270|
|Non-Cash Working Capital (NCWC)||-27,687,000,000|
|Change in NCWC||-5,853,000,000|
|Depreciation and Amortization||10,505,000,000|
|Unlevered Free Cash Flow||35,787,511,829|
|Non-Cash Working Capital (NCWC)||-21,834,000,000|
|Change in NCWC||-8,148,000,000|
|Depreciation and Amortization||11,257,000,000|
|Unlevered Free Cash Flow||44,309,833,137|
|Non-Cash Working Capital (NCWC)||-13,686,000,000|
|Change in NCWC||-2,768,000,000|
|Depreciation and Amortization||7,946,000,000|
|Unlevered Free Cash Flow||34,151,035,375|
|Non-Cash Working Capital (NCWC)||-10,918,000,000|
|Change in NCWC||-900,000,000|
|Depreciation and Amortization||6,757,000,000|
|Unlevered Free Cash Flow||32,964,350,872|
|Non-Cash Working Capital (NCWC)||-10,018,000,000|
|Change in NCWC||-1,084,000,000|
|Depreciation and Amortization||3,277,000,000|
|Unlevered Free Cash Flow||34,133,335,473|
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