|Relative Value||85% 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 27.6%.
The calculated WACC is 3.9%. This value is used as the default discount rate.
Assuming a growth rate of 27.6%, 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 the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 532 billion. This corresponds to a present value of 421 billion.
The total present value of the projected cash flows is 50.5 billion. Adding in the terminal value gives a total present value of 472 billion.
There are presently 628.0 million outstanding shares, so the intrinsic value per share is 751.24.
The following data was to determine the past cash flows.
|Non-Cash Working Capital (NCWC)||652,000,000|
|Change in NCWC||404,000,000|
|Depreciation and Amortization||3,169,000,000|
|Unlevered Free Cash Flow||5,313,052,665|
|Non-Cash Working Capital (NCWC)||248,000,000|
|Change in NCWC||188,000,000|
|Depreciation and Amortization||3,196,000,000|
|Unlevered Free Cash Flow||4,121,148,357|
|Non-Cash Working Capital (NCWC)||60,000,000|
|Change in NCWC||-653,000,000|
|Depreciation and Amortization||3,210,000,000|
|Unlevered Free Cash Flow||2,812,678,906|
|Non-Cash Working Capital (NCWC)||713,000,000|
|Change in NCWC||910,000,000|
|Depreciation and Amortization||1,651,000,000|
|Unlevered Free Cash Flow||3,174,012,589|
|Non-Cash Working Capital (NCWC)||-197,000,000|
|Change in NCWC||88,000,000|
|Depreciation and Amortization||556,000,000|
|Unlevered Free Cash Flow||1,449,004,472|
|Non-Cash Working Capital (NCWC)||-285,000,000|
|Change in NCWC||12,000,000|
|Depreciation and Amortization||433,000,000|
|Unlevered Free Cash Flow||1,535,358,273|
|Non-Cash Working Capital (NCWC)||-297,000,000|
|Change in NCWC||-31,000,000|
|Depreciation and Amortization||411,000,000|
|Unlevered Free Cash Flow||1,131,181,434|
|Non-Cash Working Capital (NCWC)||-266,000,000|
|Change in NCWC||-64,000,000|
|Depreciation and Amortization||417,000,000|
|Unlevered Free Cash Flow||872,067,952|
|Non-Cash Working Capital (NCWC)||-202,000,000|
|Change in NCWC||-134,000,000|
|Depreciation and Amortization||404,000,000|
|Unlevered Free Cash Flow||839,998,242|
|Non-Cash Working Capital (NCWC)||-68,000,000|
|Change in NCWC||-19,000,000|
|Depreciation and Amortization||403,000,000|
|Unlevered Free Cash Flow||906,333,333|
|Non-Cash Working Capital (NCWC)||-49,000,000|
|Change in NCWC||137,000,000|
|Depreciation and Amortization||354,000,000|
|Unlevered Free Cash Flow||1,003,776,666|
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.