Discounted Cash Flow (DCF) Analysis Levered

Arkema S.A. (AKE.PA)

92.7 €

+1.00 (+1.09%)

All numbers are in Millions, Currency in USD

Stock DCF: 119.48 | 92.7 | undervalue

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	8,326	8,816	8,738	7,884	9,519	9,898.93	10,294.03	10,704.90	11,132.16	11,576.48
Revenue (%)
Operating Cash Flow	1,008	1,029	1,300	1,115	915	1,235.61	1,284.92	1,336.21	1,389.54	1,445
Operating Cash Flow (%)
Capital Expenditure	-459	-591	-661	-605	-763	-702.24	-730.27	-759.42	-789.73	-821.25
Capital Expenditure (%)
Free Cash Flow	549	438	639	510	152	533.36	554.65	576.79	599.81	623.75

Weighted Average Cost Of Capital

Share price	$ 92.7
Beta	1.271
Diluted Shares Outstanding	76.41
Cost of Debt
Tax Rate	21.90
After-tax Cost of Debt	3.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.519
Total Debt	2,762
Total Equity	7,083.15
Total Capital	9,845.15
Debt Weighting	28.05
Equity Weighting	71.95
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	8,326	8,816	8,738	7,884	9,519	9,898.93	10,294.03	10,704.90	11,132.16	11,576.48
Operating Cash Flow	1,008	1,029	1,300	1,115	915	1,235.61	1,284.92	1,336.21	1,389.54	1,445
Capital Expenditure	-459	-591	-661	-605	-763	-702.24	-730.27	-759.42	-789.73	-821.25
Free Cash Flow	549	438	639	510	152	533.36	554.65	576.79	599.81	623.75
WACC
PV LFCF						494.13	476.05	458.64	441.86	425.70
SUM PV LFCF										2,296.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.94
Free cash flow (t + 1)	636.23
Terminal Value	10,710.91
Present Value of Terminal Value	7,309.95

Intrinsic Value

Enterprise Value	9,606.33
Net Debt	477
Equity Value	9,129.33
Shares Outstanding	76.41
Equity Value Per Share	119.48