DCF Tool

WEC

WEC Energy Group Inc – Other Electric Power Generation
WEC Energy Group, based in Milwaukee, is one of the nation's premier energy companies, serving 4.5 million customers in Wisconsin, Illinois, Michigan and Minnesota. The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in the Midwest. WEC Energy Group is a Fortune 500 company and a component of the S&P 500. The company has approximately 45,000 stockholders of record, 7,500 employees and $35 billion of assets.
Analysis Results
Intrinsic Value $44.00
Latest Price $103.55
Relative Value 135% overvalued
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Cash Flow (Millions)
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 3.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.3%, 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 (million) Present value (million)
2022 428 413
2023 442 412
2024 456 411
2025 471 409
2026 486 408
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 14600 million. This corresponds to a present value of 11800 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2050 million. Adding in the terminal value gives a total present value of 13900 million.

There are presently 315.0 million outstanding shares, so the intrinsic value per share is 44.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,656,700,000
Current Cash 16,300,000
Current Liabilities 3,753,000,000
Current Debt 2,066,400,000
Non-Cash Working Capital (NCWC) 953,800,000
Change in NCWC 481,000,000
EBIT 1,873,000,000
Tax Provision 200,300,000
Depreciation and Amortization 1,074,300,000
Capital Expenditure -2,252,800,000
Unlevered Free Cash Flow 925,191,820
Current Assets 2,083,000,000
Current Cash 24,800,000
Current Liabilities 4,148,100,000
Current Debt 2,562,700,000
Non-Cash Working Capital (NCWC) 472,800,000
Change in NCWC 75,400,000
EBIT 1,881,900,000
Tax Provision 227,900,000
Depreciation and Amortization 975,900,000
Capital Expenditure -2,238,800,000
Unlevered Free Cash Flow 394,333,526
Current Assets 2,093,600,000
Current Cash 37,500,000
Current Liabilities 3,182,700,000
Current Debt 1,524,000,000
Non-Cash Working Capital (NCWC) 397,400,000
Change in NCWC -239,100,000
EBIT 1,659,000,000
Tax Provision 125,000,000
Depreciation and Amortization 926,300,000
Capital Expenditure -2,260,800,000
Unlevered Free Cash Flow -79,222,529
Current Assets 2,247,600,000
Current Cash 84,500,000
Current Liabilities 3,331,700,000
Current Debt 1,805,100,000
Non-Cash Working Capital (NCWC) 636,500,000
Change in NCWC 44,500,000
EBIT 1,605,100,000
Tax Provision 169,800,000
Depreciation and Amortization 845,800,000
Capital Expenditure -2,115,700,000
Unlevered Free Cash Flow 158,171,933
Current Assets 2,213,500,000
Current Cash 38,900,000
Current Liabilities 3,869,300,000
Current Debt 2,286,700,000
Non-Cash Working Capital (NCWC) 592,000,000
Change in NCWC -125,000,000
EBIT 1,939,500,000
Tax Provision 383,500,000
Depreciation and Amortization 798,600,000
Capital Expenditure -1,959,500,000
Unlevered Free Cash Flow 185,331,144
Current Assets 2,168,700,000
Current Cash 37,500,000
Current Liabilities 2,431,600,000
Current Debt 1,017,400,000
Non-Cash Working Capital (NCWC) 717,000,000
Change in NCWC 16,300,000
EBIT 1,828,600,000
Tax Provision 566,500,000
Depreciation and Amortization 762,600,000
Capital Expenditure -1,423,700,000
Unlevered Free Cash Flow 496,269,701
Current Assets 2,206,800,000
Current Cash 49,800,000
Current Liabilities 2,709,000,000
Current Debt 1,252,700,000
Non-Cash Working Capital (NCWC) 700,700,000
Change in NCWC -145,800,000
EBIT 1,346,600,000
Tax Provision 433,800,000
Depreciation and Amortization 583,500,000
Capital Expenditure -1,266,200,000
Unlevered Free Cash Flow -25,755,395
Current Assets 1,535,400,000
Current Cash 61,900,000
Current Liabilities 1,668,700,000
Current Debt 1,041,700,000
Non-Cash Working Capital (NCWC) 846,500,000
Change in NCWC -61,800,000
EBIT 1,160,700,000
Tax Provision 361,700,000
Depreciation and Amortization 419,400,000
Capital Expenditure -736,100,000
Unlevered Free Cash Flow 340,278,747
Current Assets 1,551,100,000
Current Cash 26,000,000
Current Liabilities 1,496,400,000
Current Debt 879,600,000
Non-Cash Working Capital (NCWC) 908,300,000
Change in NCWC 266,600,000
EBIT 1,100,600,000
Tax Provision 337,900,000
Depreciation and Amortization 400,200,000
Capital Expenditure -687,400,000
Unlevered Free Cash Flow 673,693,062
Current Assets 1,313,900,000
Current Cash 35,600,000
Current Liabilities 1,443,300,000
Current Debt 806,700,000
Non-Cash Working Capital (NCWC) 641,700,000
Change in NCWC -108,400,000
EBIT 1,066,000,000
Tax Provision 306,300,000
Depreciation and Amortization 371,700,000
Capital Expenditure -707,000,000
Unlevered Free Cash Flow 239,335,186

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