Discounted Cash Flow (DCF) Analysis Levered

Caterpillar Inc. (CAT)

$217.14

+4.15 (+1.95%)
All numbers are in Millions, Currency in USD
Stock DCF: 188.55 | 217.14 | 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 45,46254,72253,80041,74850,97153,312.4055,761.3558,322.8061,001.9163,804.09
Revenue (%)
Operating Cash Flow 5,7026,5586,9126,3277,1987,106.667,433.117,774.568,131.698,505.23
Operating Cash Flow (%)
Capital Expenditure -2,336-2,916-2,669-2,115-2,472-2,702.30-2,826.43-2,956.27-3,092.07-3,234.10
Capital Expenditure (%)
Free Cash Flow 3,3663,6424,2434,2124,7264,404.364,606.684,818.295,039.625,271.12

Weighted Average Cost Of Capital

Share price $ 217.14
Beta 0.929
Diluted Shares Outstanding 548.60
Cost of Debt
Tax Rate 20.90
After-tax Cost of Debt 1.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.128
Total Debt 37,789
Total Equity 119,123
Total Capital 156,912
Debt Weighting 24.08
Equity Weighting 75.92
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 45,46254,72253,80041,74850,97153,312.4055,761.3558,322.8061,001.9163,804.09
Operating Cash Flow 5,7026,5586,9126,3277,1987,106.667,433.117,774.568,131.698,505.23
Capital Expenditure -2,336-2,916-2,669-2,115-2,472-2,702.30-2,826.43-2,956.27-3,092.07-3,234.10
Free Cash Flow 3,3663,6424,2434,2124,7264,404.364,606.684,818.295,039.625,271.12
WACC
PV LFCF 3,165.333,133.393,101.763,070.463,039.47
SUM PV LFCF 20,425.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.66
Free cash flow (t + 1) 5,376.55
Terminal Value 146,900.20
Present Value of Terminal Value 111,549.94

Intrinsic Value

Enterprise Value 131,975.60
Net Debt 28,535
Equity Value 103,440.60
Shares Outstanding 548.60
Equity Value Per Share 188.55