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 |