Discounted Cash Flow (DCF) Analysis Levered
American Electric Power Company, In... (AEP)
$90.99
+0.56 (+0.62%)
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 | $ 90.99 |
|---|---|
| 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 | 5.558 |
| Total Debt | 39,650.30 |
| Total Equity | 46,721.96 |
| Total Capital | 86,372.26 |
| Debt Weighting | 45.91 |
| Equity Weighting | 54.09 |
| 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 | -820.68 | -827.09 | -833.55 | -840.07 | -846.63 | |||||
| SUM PV LFCF | -4,168.02 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.55 |
| Free cash flow (t + 1) | -1,078.73 |
| Terminal Value | -42,303.33 |
| Present Value of Terminal Value | -33,865.26 |
Intrinsic Value
| Enterprise Value | -38,033.28 |
|---|---|
| Net Debt | 39,140.90 |
| Equity Value | -77,174.18 |
| Shares Outstanding | 513.48 |
| Equity Value Per Share | -150.30 |