Discounted Cash Flow (DCF) Analysis Levered

AECOM (ACM)

$76.57

+1.62 (+2.16%)

All numbers are in Millions, Currency in USD

Stock DCF: 19.14 | 76.57 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	18,203.40	20,155.51	20,173.33	13,239.98	13,340.85	12,580.60	11,863.67	11,187.60	10,550.05	9,948.84
Revenue (%)
Operating Cash Flow	696.65	774.55	777.62	329.62	704.67	485.52	457.85	431.76	407.15	383.95
Operating Cash Flow (%)
Capital Expenditure	-86.35	-113.28	-100.66	-114.59	-136.26	-86.11	-81.20	-76.57	-72.21	-68.10
Capital Expenditure (%)
Free Cash Flow	610.30	661.27	676.95	215.03	568.41	399.41	376.65	355.18	334.94	315.86

Weighted Average Cost Of Capital

Share price	$ 76.57
Beta	1.402
Diluted Shares Outstanding	149.68
Cost of Debt
Tax Rate	57.64
After-tax Cost of Debt	2.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.467
Total Debt	3,520.23
Total Equity	11,460.69
Total Capital	14,980.92
Debt Weighting	23.50
Equity Weighting	76.50
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	18,203.40	20,155.51	20,173.33	13,239.98	13,340.85	12,580.60	11,863.67	11,187.60	10,550.05	9,948.84
Operating Cash Flow	696.65	774.55	777.62	329.62	704.67	485.52	457.85	431.76	407.15	383.95
Capital Expenditure	-86.35	-113.28	-100.66	-114.59	-136.26	-86.11	-81.20	-76.57	-72.21	-68.10
Free Cash Flow	610.30	661.27	676.95	215.03	568.41	399.41	376.65	355.18	334.94	315.86
WACC
PV LFCF						370.10	323.39	282.58	246.92	215.76
SUM PV LFCF										1,438.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.92
Free cash flow (t + 1)	322.17
Terminal Value	5,442.10
Present Value of Terminal Value	3,717.55

Intrinsic Value

Enterprise Value	5,156.31
Net Debt	2,291.03
Equity Value	2,865.28
Shares Outstanding	149.68
Equity Value Per Share	19.14