DCF Tool

LUMN

Lumen Technologies Inc – Telecommunications Resellers
Lumen is guided by its belief that humanity is at its best when technology advances the way we live and work. With approximately 450,000 route fiber miles and serving customers in more than 60 countries, it delivers the fastest, most secure platform for applications and data to help businesses, government and communities deliver amazing experiences.
Analysis Results
Intrinsic Value $264.20
Latest Price $11.06
Relative Value 96% undervalued
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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 11.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.4%, 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 6.84 6.52
2023 7.62 6.92
2024 8.48 7.34
2025 9.45 7.79
2026 10.5 8.26
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 316 billion. This corresponds to a present value of 236 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 36.8 billion. Adding in the terminal value gives a total present value of 273 billion.

There are presently 1.03 billion outstanding shares, so the intrinsic value per share is 264.2.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 11,536,000,000
Current Cash 354,000,000
Current Liabilities 7,169,000,000
Current Debt 1,554,000,000
Non-Cash Working Capital (NCWC) 5,567,000,000
Change in NCWC 7,004,000,000
EBIT 4,285,000,000
Tax Provision 668,000,000
Depreciation and Amortization 4,019,000,000
Capital Expenditure -2,900,000,000
Unlevered Free Cash Flow 11,348,251,758
Current Assets 3,176,000,000
Current Cash 406,000,000
Current Liabilities 6,634,000,000
Current Debt 2,427,000,000
Non-Cash Working Capital (NCWC) -1,437,000,000
Change in NCWC 443,000,000
EBIT 3,604,000,000
Tax Provision 450,000,000
Depreciation and Amortization 4,710,000,000
Capital Expenditure -3,729,000,000
Unlevered Free Cash Flow 5,028,000,000
Current Assets 4,768,000,000
Current Cash 1,690,000,000
Current Liabilities 7,258,000,000
Current Debt 2,300,000,000
Non-Cash Working Capital (NCWC) -1,880,000,000
Change in NCWC -419,000,000
EBIT 3,780,000,000
Tax Provision 503,000,000
Depreciation and Amortization 4,829,000,000
Capital Expenditure -3,628,000,000
Unlevered Free Cash Flow 4,562,000,000
Current Assets 3,820,000,000
Current Cash 488,000,000
Current Liabilities 5,531,000,000
Current Debt 738,000,000
Non-Cash Working Capital (NCWC) -1,461,000,000
Change in NCWC -726,000,000
EBIT 3,296,000,000
Tax Provision 170,000,000
Depreciation and Amortization 5,120,000,000
Capital Expenditure -3,175,000,000
Unlevered Free Cash Flow 4,515,000,000
Current Assets 4,194,000,000
Current Cash 551,000,000
Current Liabilities 4,857,000,000
Current Debt 479,000,000
Non-Cash Working Capital (NCWC) -735,000,000
Change in NCWC -1,885,000,000
EBIT 2,009,000,000
Tax Provision -849,000,000
Depreciation and Amortization 3,936,000,000
Capital Expenditure -3,106,000,000
Unlevered Free Cash Flow 954,000,000
Current Assets 5,162,000,000
Current Cash 222,000,000
Current Liabilities 5,349,000,000
Current Debt 1,559,000,000
Non-Cash Working Capital (NCWC) 1,150,000,000
Change in NCWC 1,633,000,000
EBIT 2,331,000,000
Tax Provision 394,000,000
Depreciation and Amortization 3,916,000,000
Capital Expenditure -2,981,000,000
Unlevered Free Cash Flow 3,998,594,117
Current Assets 2,650,000,000
Current Cash 126,000,000
Current Liabilities 4,604,000,000
Current Debt 1,597,000,000
Non-Cash Working Capital (NCWC) -483,000,000
Change in NCWC -643,000,000
EBIT 2,605,000,000
Tax Provision 438,000,000
Depreciation and Amortization 4,189,000,000
Capital Expenditure -2,872,000,000
Unlevered Free Cash Flow 2,411,986,322
Current Assets 3,576,000,000
Current Cash 128,000,000
Current Liabilities 3,918,000,000
Current Debt 630,000,000
Non-Cash Working Capital (NCWC) 160,000,000
Change in NCWC -43,000,000
EBIT 2,410,000,000
Tax Provision 338,000,000
Depreciation and Amortization 4,428,000,000
Capital Expenditure -3,047,000,000
Unlevered Free Cash Flow 3,014,144,144
Current Assets 3,907,000,000
Current Cash 168,000,000
Current Liabilities 4,409,000,000
Current Debt 873,000,000
Non-Cash Working Capital (NCWC) 203,000,000
Change in NCWC 59,000,000
EBIT 2,545,000,000
Tax Provision 463,000,000
Depreciation and Amortization 4,541,000,000
Capital Expenditure -3,048,000,000
Unlevered Free Cash Flow 3,634,000,000
Current Assets 3,613,000,000
Current Cash 211,000,000
Current Liabilities 4,595,000,000
Current Debt 1,337,000,000
Non-Cash Working Capital (NCWC) 144,000,000
Change in NCWC 288,000,000
EBIT 2,713,000,000
Tax Provision 473,000,000
Depreciation and Amortization 4,780,000,000
Capital Expenditure -2,919,000,000
Unlevered Free Cash Flow 3,835,400,800

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