Discounted Cash Flow (DCF) Analysis Levered

British American Tobacco p.l.c. (BTI)

$29.78

-0.11 (-0.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 131.32 | 29.78 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 25,87725,77625,68427,65527,28327,663.7128,049.7428,441.1528,838.0229,240.43
Revenue (%)
Operating Cash Flow 8,9969,7869,71710,39410,71410,369.3210,514.0110,660.7310,809.4910,960.32
Operating Cash Flow (%)
Capital Expenditure -815-755-745-656-601-749.92-760.38-770.99-781.75-792.66
Capital Expenditure (%)
Free Cash Flow 8,1819,0318,9729,73810,1139,619.409,753.639,889.7310,027.7410,167.67

Weighted Average Cost Of Capital

Share price $ 29.78
Beta 0.243
Diluted Shares Outstanding 2,256
Cost of Debt
Tax Rate 15.79
After-tax Cost of Debt 4.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.306
Total Debt 39,730
Total Equity 67,183.68
Total Capital 106,913.68
Debt Weighting 37.16
Equity Weighting 62.84
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 25,87725,77625,68427,65527,28327,663.7128,049.7428,441.1528,838.0229,240.43
Operating Cash Flow 8,9969,7869,71710,39410,71410,369.3210,514.0110,660.7310,809.4910,960.32
Capital Expenditure -815-755-745-656-601-749.92-760.38-770.99-781.75-792.66
Free Cash Flow 8,1819,0318,9729,73810,1139,619.409,753.639,889.7310,027.7410,167.67
WACC
PV LFCF 9,177.078,877.248,587.218,306.668,035.27
SUM PV LFCF 42,983.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.82
Free cash flow (t + 1) 10,371.02
Terminal Value 367,766.64
Present Value of Terminal Value 290,637.44

Intrinsic Value

Enterprise Value 333,620.88
Net Debt 37,367
Equity Value 296,253.88
Shares Outstanding 2,256
Equity Value Per Share 131.32