Discounted Cash Flow (DCF) Analysis Levered
Chesapeake Energy Corporation (CHK)
$82.9
+1.80 (+2.22%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 9,496 | 10,231 | 8,489 | 5,210 | 4,377.91 | 3,678.71 | 3,091.19 | 2,597.49 | 2,182.65 | 1,834.06 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 745 | 2,000 | 1,623 | 1,164 | 753.60 | 633.24 | 532.10 | 447.12 | 375.71 | 315.71 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -306 | -309 | -83 | -31 | -85.54 | -71.88 | -60.40 | -50.75 | -42.65 | -35.83 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 439 | 1,691 | 1,540 | 1,133 | 668.06 | 561.36 | 471.71 | 396.37 | 333.07 | 279.87 |
Weighted Average Cost Of Capital
Share price | $ 82.9 |
---|---|
Beta | 2.459 |
Diluted Shares Outstanding | 9.77 |
Cost of Debt | |
Tax Rate | 0.36 |
After-tax Cost of Debt | 4.98% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 14.496 |
Total Debt | 2,307 |
Total Equity | 810.18 |
Total Capital | 3,117.18 |
Debt Weighting | 74.01 |
Equity Weighting | 25.99 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 9,496 | 10,231 | 8,489 | 5,210 | 4,377.91 | 3,678.71 | 3,091.19 | 2,597.49 | 2,182.65 | 1,834.06 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 745 | 2,000 | 1,623 | 1,164 | 753.60 | 633.24 | 532.10 | 447.12 | 375.71 | 315.71 |
Capital Expenditure | -306 | -309 | -83 | -31 | -85.54 | -71.88 | -60.40 | -50.75 | -42.65 | -35.83 |
Free Cash Flow | 439 | 1,691 | 1,540 | 1,133 | 668.06 | 561.36 | 471.71 | 396.37 | 333.07 | 279.87 |
WACC | ||||||||||
PV LFCF | 621.74 | 486.22 | 380.24 | 297.36 | 232.54 | 181.85 | ||||
SUM PV LFCF | 1,695.78 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.45 |
Free cash flow (t + 1) | 285.47 |
Terminal Value | 5,237.97 |
Present Value of Terminal Value | 3,657.05 |
Intrinsic Value
Enterprise Value | 5,352.83 |
---|---|
Net Debt | 1,402 |
Equity Value | 3,950.83 |
Shares Outstanding | 9.77 |
Equity Value Per Share | 404.26 |