Discounted Cash Flow (DCF) Analysis Levered
American Electric Power Company, In... (AEP)
$89.09
+3.68 (+4.31%)
All numbers are in Millions, Currency in USD
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 | 16,195.70 | 15,561.40 | 14,918.50 | 16,792 | 19,639.50 | 20,693.55 | 21,804.16 | 22,974.38 | 24,207.41 | 25,506.61 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 5,223.20 | 4,270.10 | 3,832.90 | 3,839.90 | 5,288 | 5,594.54 | 5,894.79 | 6,211.17 | 6,544.52 | 6,895.76 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -6,357 | -6,143.70 | -6,316 | -5,764.10 | -100.70 | -6,452.56 | -6,798.86 | -7,163.75 | -7,548.23 | -7,953.34 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | -1,133.80 | -1,873.60 | -2,483.10 | -1,924.20 | 5,187.30 | -858.02 | -904.07 | -952.59 | -1,003.71 | -1,057.58 |
Weighted Average Cost Of Capital
Share price | $ 89.09 |
---|---|
Beta | 0.437 |
Diluted Shares Outstanding | 513.48 |
Cost of Debt | |
Tax Rate | 4.74 |
After-tax Cost of Debt | 3.35% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 5.444 |
Total Debt | 39,650.30 |
Total Equity | 45,746.34 |
Total Capital | 85,396.64 |
Debt Weighting | 46.43 |
Equity Weighting | 53.57 |
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 | 16,195.70 | 15,561.40 | 14,918.50 | 16,792 | 19,639.50 | 20,693.55 | 21,804.16 | 22,974.38 | 24,207.41 | 25,506.61 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 5,223.20 | 4,270.10 | 3,832.90 | 3,839.90 | 5,288 | 5,594.54 | 5,894.79 | 6,211.17 | 6,544.52 | 6,895.76 |
Capital Expenditure | -6,357 | -6,143.70 | -6,316 | -5,764.10 | -100.70 | -6,452.56 | -6,798.86 | -7,163.75 | -7,548.23 | -7,953.34 |
Free Cash Flow | -1,133.80 | -1,873.60 | -2,483.10 | -1,924.20 | 5,187.30 | -858.02 | -904.07 | -952.59 | -1,003.71 | -1,057.58 |
WACC | ||||||||||
PV LFCF | -786.16 | -792.91 | -799.72 | -806.59 | -813.51 | |||||
SUM PV LFCF | -4,177.66 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 4.47 |
Free cash flow (t + 1) | -1,078.73 |
Terminal Value | -43,673.48 |
Present Value of Terminal Value | -35,096.18 |
Intrinsic Value
Enterprise Value | -39,273.83 |
---|---|
Net Debt | 39,140.90 |
Equity Value | -78,414.73 |
Shares Outstanding | 513.48 |
Equity Value Per Share | -152.71 |