Discounted Cash Flow (DCF) Analysis Levered
American Electric Power Company, In... (AEP)
$92.87
-0.20 (-0.21%)
All numbers are in Millions, Currency in USD
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 | 15,424.90 | 16,195.70 | 15,561.40 | 14,918.50 | 16,792 | 17,191.12 | 17,599.74 | 18,018.06 | 18,446.33 | 18,884.77 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,270.40 | 5,223.20 | 4,270.10 | 3,832.90 | 3,839.90 | 4,673.77 | 4,784.86 | 4,898.59 | 5,015.03 | 5,134.23 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -5,799.30 | -6,357 | -6,143.70 | -6,316 | -5,764.10 | -6,635.49 | -6,793.21 | -6,954.67 | -7,119.98 | -7,289.21 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -1,528.90 | -1,133.80 | -1,873.60 | -2,483.10 | -1,924.20 | -1,961.71 | -2,008.34 | -2,056.08 | -2,104.95 | -2,154.98 |
Weighted Average Cost Of Capital
| Share price | $ 92.87 |
|---|---|
| Beta | 0.449 |
| Diluted Shares Outstanding | 501.78 |
| Cost of Debt | |
| Tax Rate | 0.95 |
| After-tax Cost of Debt | 3.24% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.668 |
| Total Debt | 36,658.90 |
| Total Equity | 46,600.68 |
| Total Capital | 83,259.58 |
| Debt Weighting | 44.03 |
| Equity Weighting | 55.97 |
| 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 | 15,424.90 | 16,195.70 | 15,561.40 | 14,918.50 | 16,792 | 17,191.12 | 17,599.74 | 18,018.06 | 18,446.33 | 18,884.77 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,270.40 | 5,223.20 | 4,270.10 | 3,832.90 | 3,839.90 | 4,673.77 | 4,784.86 | 4,898.59 | 5,015.03 | 5,134.23 |
| Capital Expenditure | -5,799.30 | -6,357 | -6,143.70 | -6,316 | -5,764.10 | -6,635.49 | -6,793.21 | -6,954.67 | -7,119.98 | -7,289.21 |
| Free Cash Flow | -1,528.90 | -1,133.80 | -1,873.60 | -2,483.10 | -1,924.20 | -1,961.71 | -2,008.34 | -2,056.08 | -2,104.95 | -2,154.98 |
| WACC | ||||||||||
| PV LFCF | -1,875.44 | -1,835.58 | -1,796.57 | -1,758.39 | -1,721.02 | |||||
| SUM PV LFCF | -8,987 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.60 |
| Free cash flow (t + 1) | -2,198.08 |
| Terminal Value | -84,541.54 |
| Present Value of Terminal Value | -67,516.78 |
Intrinsic Value
| Enterprise Value | -76,503.78 |
|---|---|
| Net Debt | 36,255.50 |
| Equity Value | -112,759.28 |
| Shares Outstanding | 501.78 |
| Equity Value Per Share | -224.72 |