Discounted Cash Flow (DCF) Analysis Levered
Ally Financial Inc. (ALLY)
$33.64
-0.92 (-2.66%)
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 | 7,002 | 6,783 | 7,313 | 7,478 | 8,780 | 9,314.55 | 9,881.66 | 10,483.28 | 11,121.54 | 11,798.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,079 | 4,150 | 4,050 | 3,739 | 4,042 | 5,045.78 | 5,352.98 | 5,678.89 | 6,024.64 | 6,391.44 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -4,052 | -3,709 | -4,023 | -4,320 | -5,120 | -5,284.06 | -5,605.77 | -5,947.07 | -6,309.15 | -6,693.27 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 27 | 441 | 27 | -581 | -1,078 | -238.29 | -252.79 | -268.18 | -284.51 | -301.83 |
Weighted Average Cost Of Capital
| Share price | $ 33.64 |
|---|---|
| Beta | 1.343 |
| Diluted Shares Outstanding | 365.18 |
| Cost of Debt | |
| Tax Rate | 20.62 |
| After-tax Cost of Debt | 8.83% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.978 |
| Total Debt | 17,204 |
| Total Equity | 12,284.66 |
| Total Capital | 29,488.66 |
| Debt Weighting | 58.34 |
| Equity Weighting | 41.66 |
| 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 | 7,002 | 6,783 | 7,313 | 7,478 | 8,780 | 9,314.55 | 9,881.66 | 10,483.28 | 11,121.54 | 11,798.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,079 | 4,150 | 4,050 | 3,739 | 4,042 | 5,045.78 | 5,352.98 | 5,678.89 | 6,024.64 | 6,391.44 |
| Capital Expenditure | -4,052 | -3,709 | -4,023 | -4,320 | -5,120 | -5,284.06 | -5,605.77 | -5,947.07 | -6,309.15 | -6,693.27 |
| Free Cash Flow | 27 | 441 | 27 | -581 | -1,078 | -238.29 | -252.79 | -268.18 | -284.51 | -301.83 |
| WACC | ||||||||||
| PV LFCF | -217.99 | -211.57 | -205.33 | -199.28 | -193.40 | |||||
| SUM PV LFCF | -1,027.57 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.31 |
| Free cash flow (t + 1) | -307.87 |
| Terminal Value | -4,211.63 |
| Present Value of Terminal Value | -2,698.67 |
Intrinsic Value
| Enterprise Value | -3,726.24 |
|---|---|
| Net Debt | 12,142 |
| Equity Value | -15,868.24 |
| Shares Outstanding | 365.18 |
| Equity Value Per Share | -43.45 |