Discounted Cash Flow (DCF) Analysis Levered
Caterpillar Inc. (CAT)
$274.27
+1.21 (+0.44%)
All numbers are in Millions, Currency in USD
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 | 54,722 | 53,800 | 41,748 | 50,971 | 59,427 | 61,595.42 | 63,842.97 | 66,172.52 | 68,587.08 | 71,089.75 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,558 | 6,912 | 6,327 | 7,198 | 7,766 | 8,275.58 | 8,577.55 | 8,890.53 | 9,214.94 | 9,551.18 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,916 | -2,669 | -2,115 | -2,472 | -2,599 | -3,027.92 | -3,138.40 | -3,252.92 | -3,371.61 | -3,494.64 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,642 | 4,243 | 4,212 | 4,726 | 5,167 | 5,247.66 | 5,439.14 | 5,637.61 | 5,843.32 | 6,056.54 |
Weighted Average Cost Of Capital
| Share price | $ 274.27 |
|---|---|
| Beta | 1.080 |
| Diluted Shares Outstanding | 548.50 |
| Cost of Debt | |
| Tax Rate | 23.39 |
| After-tax Cost of Debt | 0.92% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.639 |
| Total Debt | 36,993 |
| Total Equity | 150,437.10 |
| Total Capital | 187,430.10 |
| Debt Weighting | 19.74 |
| Equity Weighting | 80.26 |
| 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 | 54,722 | 53,800 | 41,748 | 50,971 | 59,427 | 61,595.42 | 63,842.97 | 66,172.52 | 68,587.08 | 71,089.75 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,558 | 6,912 | 6,327 | 7,198 | 7,766 | 8,275.58 | 8,577.55 | 8,890.53 | 9,214.94 | 9,551.18 |
| Capital Expenditure | -2,916 | -2,669 | -2,115 | -2,472 | -2,599 | -3,027.92 | -3,138.40 | -3,252.92 | -3,371.61 | -3,494.64 |
| Free Cash Flow | 3,642 | 4,243 | 4,212 | 4,726 | 5,167 | 5,247.66 | 5,439.14 | 5,637.61 | 5,843.32 | 6,056.54 |
| WACC | ||||||||||
| PV LFCF | 4,862.55 | 4,670.10 | 4,485.28 | 4,307.76 | 4,137.28 | |||||
| SUM PV LFCF | 22,462.97 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.92 |
| Free cash flow (t + 1) | 6,177.67 |
| Terminal Value | 104,352.48 |
| Present Value of Terminal Value | 71,284.17 |
Intrinsic Value
| Enterprise Value | 93,747.14 |
|---|---|
| Net Debt | 29,989 |
| Equity Value | 63,758.14 |
| Shares Outstanding | 548.50 |
| Equity Value Per Share | 116.24 |