Discounted Cash Flow (DCF) Analysis Levered

ABB Ltd (ABB)

$32.14

+0.31 (+0.97%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.43 | 32.14 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	27,662	27,978	26,134	28,945	29,446	29,964.13	30,491.39	31,027.92	31,573.89	32,129.46
Revenue (%)
Operating Cash Flow	2,924	2,325	1,693	3,330	1,287	2,471.08	2,514.56	2,558.81	2,603.84	2,649.65
Operating Cash Flow (%)
Capital Expenditure	-772	-762	-694	-820	-762	-814.47	-828.80	-843.38	-858.22	-873.32
Capital Expenditure (%)
Free Cash Flow	2,152	1,563	999	2,510	525	1,656.62	1,685.77	1,715.43	1,745.61	1,776.33

Weighted Average Cost Of Capital

Share price	$ 32.14
Beta	1.024
Diluted Shares Outstanding	1,910
Cost of Debt
Tax Rate	27.08
After-tax Cost of Debt	1.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.361
Total Debt	8,549
Total Equity	61,387.40
Total Capital	69,936.40
Debt Weighting	12.22
Equity Weighting	87.78
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	27,662	27,978	26,134	28,945	29,446	29,964.13	30,491.39	31,027.92	31,573.89	32,129.46
Operating Cash Flow	2,924	2,325	1,693	3,330	1,287	2,471.08	2,514.56	2,558.81	2,603.84	2,649.65
Capital Expenditure	-772	-762	-694	-820	-762	-814.47	-828.80	-843.38	-858.22	-873.32
Free Cash Flow	2,152	1,563	999	2,510	525	1,656.62	1,685.77	1,715.43	1,745.61	1,776.33
WACC
PV LFCF						1,541.47	1,459.56	1,382.01	1,308.58	1,239.05
SUM PV LFCF										6,930.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.47
Free cash flow (t + 1)	1,811.86
Terminal Value	33,123.51
Present Value of Terminal Value	23,104.69

Intrinsic Value

Enterprise Value	30,035.35
Net Debt	4,393
Equity Value	25,642.35
Shares Outstanding	1,910
Equity Value Per Share	13.43