Discounted Cash Flow (DCF) Analysis Levered

Caterpillar Inc. (CAT)

$233.54

-2.01 (-0.85%)
All numbers are in Millions, Currency in USD
Stock DCF: 153.74 | 233.54 | overvalue

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 54,72253,80041,74850,97159,42761,595.4263,842.9766,172.5268,587.0871,089.75
Revenue (%)
Operating Cash Flow 6,5586,9126,3277,1987,7668,275.588,577.558,890.539,214.949,551.18
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 3,6424,2434,2124,7266,4705,517.775,719.115,927.796,144.096,368.28

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 54,72253,80041,74850,97159,42761,595.4263,842.9766,172.5268,587.0871,089.75
Operating Cash Flow 6,5586,9126,3277,1987,7668,275.588,577.558,890.539,214.949,551.18
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 3,6424,2434,2124,7266,4705,517.775,719.115,927.796,144.096,368.28
WACC
PV LFCF 5,151.504,985.034,823.954,668.074,517.23
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