DCF Tool

SHEL

Shell Plc – Crude Petroleum and Natural Gas Extraction
Shell plc is a global group of energy and petrochemical companies with more than 80,000 employees in more than 70 countries. It uses advanced technologies and take an innovative approach to help build a sustainable energy future.
Analysis Results
Intrinsic Value $381.47
Latest Price $56.66
Relative Value 85% 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 10.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.2%, 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 31.8 30.9
2023 35.1 33.0
2024 38.7 35.3
2025 42.6 37.7
2026 47.0 40.3
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 1410 billion. This corresponds to a present value of 1170 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 177 billion. Adding in the terminal value gives a total present value of 1350 billion.

There are presently 3.54 billion outstanding shares, so the intrinsic value per share is 381.47.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 128,765,000,000
Current Cash 36,970,000,000
Current Liabilities 95,547,000,000
Current Debt 8,218,000,000
Non-Cash Working Capital (NCWC) 4,466,000,000
Change in NCWC 2,653,000,000
EBIT 26,471,000,000
Tax Provision 9,199,000,000
Depreciation and Amortization 26,921,000,000
Capital Expenditure -19,000,000,000
Unlevered Free Cash Flow 28,881,577,525
Current Assets 90,695,000,000
Current Cash 31,830,000,000
Current Liabilities 73,951,000,000
Current Debt 16,899,000,000
Non-Cash Working Capital (NCWC) 1,813,000,000
Change in NCWC -8,261,000,000
EBIT -23,725,000,000
Tax Provision -5,433,000,000
Depreciation and Amortization 52,444,000,000
Capital Expenditure -16,585,000,000
Unlevered Free Cash Flow 3,873,000,000
Current Assets 92,689,000,000
Current Cash 18,055,000,000
Current Liabilities 79,624,000,000
Current Debt 15,064,000,000
Non-Cash Working Capital (NCWC) 10,074,000,000
Change in NCWC 7,012,000,000
EBIT 26,573,000,000
Tax Provision 9,053,000,000
Depreciation and Amortization 28,701,000,000
Capital Expenditure -22,971,000,000
Unlevered Free Cash Flow 29,875,511,320
Current Assets 97,482,000,000
Current Cash 26,741,000,000
Current Liabilities 77,813,000,000
Current Debt 10,134,000,000
Non-Cash Working Capital (NCWC) 3,062,000,000
Change in NCWC -4,058,000,000
EBIT 35,295,000,000
Tax Provision 11,715,000,000
Depreciation and Amortization 22,135,000,000
Capital Expenditure -23,011,000,000
Unlevered Free Cash Flow 18,753,214,564
Current Assets 95,404,000,000
Current Cash 20,312,000,000
Current Liabilities 79,767,000,000
Current Debt 11,795,000,000
Non-Cash Working Capital (NCWC) 7,120,000,000
Change in NCWC 4,022,000,000
EBIT 19,706,000,000
Tax Provision 4,695,000,000
Depreciation and Amortization 26,223,000,000
Capital Expenditure -20,845,000,000
Unlevered Free Cash Flow 24,002,874,241
Current Assets 86,569,000,000
Current Cash 19,130,000,000
Current Liabilities 73,825,000,000
Current Debt 9,484,000,000
Non-Cash Working Capital (NCWC) 3,098,000,000
Change in NCWC 6,910,000,000
EBIT 5,912,000,000
Tax Provision 829,000,000
Depreciation and Amortization 24,993,000,000
Capital Expenditure -22,116,000,000
Unlevered Free Cash Flow 14,824,749,554
Current Assets 93,358,000,000
Current Cash 31,752,000,000
Current Liabilities 70,948,000,000
Current Debt 5,530,000,000
Non-Cash Working Capital (NCWC) -3,812,000,000
Change in NCWC -2,979,000,000
EBIT 266,000,000
Tax Provision -153,000,000
Depreciation and Amortization 26,714,000,000
Capital Expenditure -26,131,000,000
Unlevered Free Cash Flow -2,130,000,000
Current Assets 99,778,000,000
Current Cash 21,607,000,000
Current Liabilities 86,212,000,000
Current Debt 7,208,000,000
Non-Cash Working Capital (NCWC) -833,000,000
Change in NCWC -9,566,000,000
EBIT 25,995,000,000
Tax Provision 13,584,000,000
Depreciation and Amortization 24,499,000,000
Capital Expenditure -31,854,000,000
Unlevered Free Cash Flow -3,397,430,387
Current Assets 103,343,000,000
Current Cash 9,696,000,000
Current Liabilities 93,258,000,000
Current Debt 8,344,000,000
Non-Cash Working Capital (NCWC) 8,733,000,000
Change in NCWC 1,695,000,000
EBIT 34,145,000,000
Tax Provision 17,066,000,000
Depreciation and Amortization 21,509,000,000
Capital Expenditure -40,145,000,000
Unlevered Free Cash Flow -142,944,808

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