Discounted Cash Flow (DCF) Analysis Levered

APA Corporation (APA)

$33.41

+0.11 (+0.33%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.31 | 33.41 | undervalue

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 7,3486,3154,4357,98511,07513,149.1815,611.8318,535.6922,007.1526,128.76
Revenue (%)
Operating Cash Flow 3,7772,8671,3883,4964,9435,693.926,760.308,026.419,529.6311,314.39
Operating Cash Flow (%)
Capital Expenditure -3,904-2,961-1,302-1,113-2,398-4,338.36-5,150.87-6,115.55-7,260.90-8,620.76
Capital Expenditure (%)
Free Cash Flow -127-94862,3832,5451,355.561,609.441,910.862,268.732,693.63

Weighted Average Cost Of Capital

Share price $ 33.41
Beta 3.526
Diluted Shares Outstanding 333
Cost of Debt
Tax Rate 37.15
After-tax Cost of Debt 3.51%
Risk-Free Rate
Market Risk Premium
Cost of Equity 20.453
Total Debt 5,620
Total Equity 11,125.53
Total Capital 16,745.53
Debt Weighting 33.56
Equity Weighting 66.44
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 7,3486,3154,4357,98511,07513,149.1815,611.8318,535.6922,007.1526,128.76
Operating Cash Flow 3,7772,8671,3883,4964,9435,693.926,760.308,026.419,529.6311,314.39
Capital Expenditure -3,904-2,961-1,302-1,113-2,398-4,338.36-5,150.87-6,115.55-7,260.90-8,620.76
Free Cash Flow -127-94862,3832,5451,355.561,609.441,910.862,268.732,693.63
WACC
PV LFCF 1,181.111,221.851,263.991,307.591,352.68
SUM PV LFCF 6,327.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.77
Free cash flow (t + 1) 2,747.51
Terminal Value 21,515.32
Present Value of Terminal Value 10,804.53

Intrinsic Value

Enterprise Value 17,131.74
Net Debt 5,375
Equity Value 11,756.74
Shares Outstanding 333
Equity Value Per Share 35.31