Discounted Cash Flow (DCF) Analysis Levered
Caterpillar Inc. (CAT)
$233.54
-2.01 (-0.85%)
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 | -1,296 | -2,757.81 | -2,858.44 | -2,962.74 | -3,070.85 | -3,182.90 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,642 | 4,243 | 4,212 | 4,726 | 6,470 | 5,517.77 | 5,719.11 | 5,927.79 | 6,144.09 | 6,368.28 |
Weighted Average Cost Of Capital
| Share price | $ 233.54 |
|---|---|
| Beta | 1.080 |
| Diluted Shares Outstanding | 548.50 |
| Cost of Debt | |
| Tax Rate | 23.56 |
| After-tax Cost of Debt | 1.17% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.827 |
| Total Debt | 36,993 |
| Total Equity | 128,096.69 |
| Total Capital | 165,089.69 |
| Debt Weighting | 22.41 |
| Equity Weighting | 77.59 |
| 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 | -1,296 | -2,757.81 | -2,858.44 | -2,962.74 | -3,070.85 | -3,182.90 |
| Free Cash Flow | 3,642 | 4,243 | 4,212 | 4,726 | 6,470 | 5,517.77 | 5,719.11 | 5,927.79 | 6,144.09 | 6,368.28 |
| WACC | ||||||||||
| PV LFCF | 5,151.50 | 4,985.03 | 4,823.95 | 4,668.07 | 4,517.23 | |||||
| SUM PV LFCF | 24,145.78 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.11 |
| Free cash flow (t + 1) | 6,495.65 |
| Terminal Value | 127,116.35 |
| Present Value of Terminal Value | 90,167.77 |
Intrinsic Value
| Enterprise Value | 114,313.55 |
|---|---|
| Net Debt | 29,989 |
| Equity Value | 84,324.55 |
| Shares Outstanding | 548.50 |
| Equity Value Per Share | 153.74 |