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Entergy Corp. – Nuclear Electric Power Generation
Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and more than 13,000 employees.
Analysis Results
Intrinsic Value $2.93
Latest Price $100.63
Relative Value 3329% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

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 -30.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -30.6%, 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)
2022 0.0749 0.072
2023 0.052 0.048
2024 0.036 0.032
2025 0.025 0.0213
2026 0.0173 0.0142
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 0.52 billion. This corresponds to a present value of 0.41 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.187 billion. Adding in the terminal value gives a total present value of 0.597 billion.

There are presently 203.0 million outstanding shares, so the intrinsic value per share is 2.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,623,595,000
Current Cash 442,559,000
Current Liabilities 6,190,742,000
Current Debt 2,240,506,000
Non-Cash Working Capital (NCWC) -769,200,000
Change in NCWC 699,002,000
EBIT 2,109,251,000
Tax Provision 191,374,000
Depreciation and Amortization 2,242,944,000
Capital Expenditure -6,255,600,000
Unlevered Free Cash Flow -1,512,515,325
Current Assets 4,559,899,000
Current Cash 1,759,099,000
Current Liabilities 7,060,506,000
Current Debt 2,791,504,000
Non-Cash Working Capital (NCWC) -1,468,202,000
Change in NCWC -1,209,748,000
EBIT 1,795,818,000
Tax Provision -121,506,000
Depreciation and Amortization 2,257,750,000
Capital Expenditure -4,941,197,000
Unlevered Free Cash Flow -2,097,377,000
Current Assets 3,045,992,000
Current Cash 425,722,000
Current Liabilities 5,620,463,000
Current Debt 2,741,739,000
Non-Cash Working Capital (NCWC) -258,454,000
Change in NCWC 114,036,000
EBIT 1,680,524,000
Tax Provision -169,825,000
Depreciation and Amortization 2,182,313,000
Capital Expenditure -4,503,139,000
Unlevered Free Cash Flow -526,266,000
Current Assets 2,958,064,000
Current Cash 480,975,000
Current Liabilities 5,443,544,000
Current Debt 2,593,965,000
Non-Cash Working Capital (NCWC) -372,490,000
Change in NCWC -180,158,000
EBIT 1,001,686,000
Tax Provision -1,036,826,000
Depreciation and Amortization 2,040,555,000
Capital Expenditure -26,623,000
Unlevered Free Cash Flow 2,835,460,000
Current Assets 3,285,331,000
Current Cash 781,273,000
Current Liabilities 5,036,207,000
Current Debt 2,339,817,000
Non-Cash Working Capital (NCWC) -192,332,000
Change in NCWC -270,994,000
EBIT 1,781,784,000
Tax Provision 542,570,000
Depreciation and Amortization 2,078,578,000
Capital Expenditure -16,762,000
Unlevered Free Cash Flow 2,573,825,575
Current Assets 3,684,268,000
Current Cash 1,187,844,000
Current Liabilities 3,200,096,000
Current Debt 782,334,000
Non-Cash Working Capital (NCWC) 78,662,000
Change in NCWC -259,262,000
EBIT 1,949,172,000
Tax Provision -817,259,000
Depreciation and Amortization 2,123,291,000
Capital Expenditure -3,729,551,000
Unlevered Free Cash Flow 83,650,000
Current Assets 4,067,412,000
Current Cash 1,350,961,000
Current Liabilities 3,089,958,000
Current Debt 711,431,000
Non-Cash Working Capital (NCWC) 337,924,000
Change in NCWC -281,082,000
EBIT 1,615,435,000
Tax Provision -642,927,000
Depreciation and Amortization 2,117,236,000
Capital Expenditure -493,604,000
Unlevered Free Cash Flow 2,957,985,000
Current Assets 4,389,633,000
Current Cash 1,422,026,000
Current Liabilities 3,848,891,000
Current Debt 1,500,290,000
Non-Cash Working Capital (NCWC) 619,006,000
Change in NCWC -17,292,000
EBIT 2,181,472,000
Tax Provision 589,597,000
Depreciation and Amortization 2,127,892,000
Capital Expenditure -2,119,191,000
Unlevered Free Cash Flow 1,343,003,252
Current Assets 3,929,691,000
Current Cash 739,126,000
Current Liabilities 4,060,572,000
Current Debt 1,506,305,000
Non-Cash Working Capital (NCWC) 636,298,000
Change in NCWC 73,664,000
EBIT 1,651,265,000
Tax Provision 225,981,000
Depreciation and Amortization 2,012,076,000
Capital Expenditure -2,304,893,000
Unlevered Free Cash Flow 1,042,008,664
Current Assets 3,683,126,000
Current Cash 532,569,000
Current Liabilities 4,106,321,000
Current Debt 1,518,398,000
Non-Cash Working Capital (NCWC) 562,634,000
Change in NCWC 280,373,000
EBIT 1,657,867,000
Tax Provision 30,855,000
Depreciation and Amortization 1,771,649,000
Capital Expenditure -456,356,000
Unlevered Free Cash Flow 3,196,646,364

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