Discounted Cash Flow (DCF) Analysis Levered

Arconic Corporation (ARNC)

$23.565

-1.28 (-5.17%)
All numbers are in Millions, Currency in USD
Stock DCF: -23.43 | 23.565 | overvalue

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 6,8247,4427,2775,6757,5047,823.938,157.498,505.288,867.899,245.97
Revenue (%)
Operating Cash Flow 1825034576-407162.55169.48176.71184.24192.09
Operating Cash Flow (%)
Capital Expenditure -241-317-201-163-184-248.45-259.04-270.09-281.60-293.61
Capital Expenditure (%)
Free Cash Flow -59186256-157-591-85.90-89.56-93.38-97.36-101.51

Weighted Average Cost Of Capital

Share price $ 23.565
Beta 2.016
Diluted Shares Outstanding 109.07
Cost of Debt
Tax Rate 13.51
After-tax Cost of Debt 5.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.133
Total Debt 1,719
Total Equity 2,570.32
Total Capital 4,289.32
Debt Weighting 40.08
Equity Weighting 59.92
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 6,8247,4427,2775,6757,5047,823.938,157.498,505.288,867.899,245.97
Operating Cash Flow 1825034576-407162.55169.48176.71184.24192.09
Capital Expenditure -241-317-201-163-184-248.45-259.04-270.09-281.60-293.61
Free Cash Flow -59186256-157-591-85.90-89.56-93.38-97.36-101.51
WACC
PV LFCF -78.17-74.17-70.37-66.77-63.35
SUM PV LFCF -352.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.89
Free cash flow (t + 1) -103.54
Terminal Value -1,312.35
Present Value of Terminal Value -818.95

Intrinsic Value

Enterprise Value -1,171.78
Net Debt 1,384
Equity Value -2,555.78
Shares Outstanding 109.07
Equity Value Per Share -23.43