|Relative Value||59% undervalued|
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 13.7%.
The calculated WACC is 8.9%. This value is used as the default discount rate.
Assuming a growth rate of 13.7%, 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 90.5 billion. This corresponds to a present value of 54.3 billion.
The total present value of the projected cash flows is 18.4 billion. Adding in the terminal value gives a total present value of 72.7 billion.
There are presently 518.0 million outstanding shares, so the intrinsic value per share is 140.33.
The following data was to determine the past cash flows.
|Non-Cash Working Capital (NCWC)||2,059,000,000|
|Change in NCWC||1,390,000,000|
|Depreciation and Amortization||574,000,000|
|Unlevered Free Cash Flow||3,821,244,876|
|Non-Cash Working Capital (NCWC)||669,000,000|
|Change in NCWC||-573,000,000|
|Depreciation and Amortization||559,000,000|
|Unlevered Free Cash Flow||1,134,740,458|
|Non-Cash Working Capital (NCWC)||1,242,000,000|
|Change in NCWC||-156,000,000|
|Depreciation and Amortization||526,000,000|
|Unlevered Free Cash Flow||1,914,138,430|
|Non-Cash Working Capital (NCWC)||1,398,000,000|
|Change in NCWC||7,000,000|
|Depreciation and Amortization||498,000,000|
|Unlevered Free Cash Flow||2,232,002,500|
|Non-Cash Working Capital (NCWC)||1,391,000,000|
|Change in NCWC||297,000,000|
|Depreciation and Amortization||443,000,000|
|Unlevered Free Cash Flow||1,861,506,962|
|Non-Cash Working Capital (NCWC)||1,094,000,000|
|Change in NCWC||442,300,000|
|Depreciation and Amortization||379,000,000|
|Unlevered Free Cash Flow||2,029,514,588|
|Non-Cash Working Capital (NCWC)||651,700,000|
|Change in NCWC||-431,779,000|
|Depreciation and Amortization||330,000,000|
|Unlevered Free Cash Flow||1,232,812,014|
|Non-Cash Working Capital (NCWC)||1,083,479,000|
|Change in NCWC||457,578,000|
|Depreciation and Amortization||208,067,000|
|Unlevered Free Cash Flow||1,863,420,687|
|Non-Cash Working Capital (NCWC)||625,901,000|
|Change in NCWC||52,695,000|
|Depreciation and Amortization||179,930,000|
|Unlevered Free Cash Flow||1,192,293,241|
|Non-Cash Working Capital (NCWC)||573,206,000|
|Change in NCWC||129,669,000|
|Depreciation and Amortization||156,588,000|
|Unlevered Free Cash Flow||983,281,258|
This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.