Discounted Cash Flow (DCF) Analysis Levered

Arconic Corporation (ARNC)

$29.99

+0.01 (+0.03%)
All numbers are in Millions, Currency in USD
Stock DCF: -23.34 | 29.99 | overvalue

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 7,4427,2775,6757,5048,9619,575.1310,231.3610,932.5611,681.8112,482.41
Revenue (%)
Operating Cash Flow 5034576-407338220.09235.17251.29268.51286.92
Operating Cash Flow (%)
Capital Expenditure -317-201-163-184-245-288.79-308.58-329.73-352.33-376.47
Capital Expenditure (%)
Free Cash Flow 186256-157-59193-68.70-73.40-78.44-83.81-89.55

Weighted Average Cost Of Capital

Share price $ 29.99
Beta 1.812
Diluted Shares Outstanding 103.60
Cost of Debt
Tax Rate 5.73
After-tax Cost of Debt 5.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.839
Total Debt 1,714
Total Equity 3,106.96
Total Capital 4,820.96
Debt Weighting 35.55
Equity Weighting 64.45
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 7,4427,2775,6757,5048,9619,575.1310,231.3610,932.5611,681.8112,482.41
Operating Cash Flow 5034576-407338220.09235.17251.29268.51286.92
Capital Expenditure -317-201-163-184-245-288.79-308.58-329.73-352.33-376.47
Free Cash Flow 186256-157-59193-68.70-73.40-78.44-83.81-89.55
WACC
PV LFCF -62.28-60.32-58.43-56.60-54.83
SUM PV LFCF -292.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.31
Free cash flow (t + 1) -91.35
Terminal Value -1,099.22
Present Value of Terminal Value -673

Intrinsic Value

Enterprise Value -965.46
Net Debt 1,453
Equity Value -2,418.46
Shares Outstanding 103.60
Equity Value Per Share -23.34