Discounted Cash Flow (DCF) Analysis Levered

Chesapeake Energy Corporation (CHK)

$83.8

+7.46 (+9.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 396.28 | 83.8 | undervalue

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 9,49610,2318,4895,2104,377.913,678.713,091.192,597.492,182.651,834.06
Revenue (%)
Operating Cash Flow 7452,0001,6231,164753.60633.24532.10447.12375.71315.71
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 4391,6911,5401,133668.06561.36471.71396.37333.07279.87

Weighted Average Cost Of Capital

Share price $ 83.8
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 14.732
Total Debt 2,307
Total Equity 818.98
Total Capital 3,125.98
Debt Weighting 73.80
Equity Weighting 26.20
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 9,49610,2318,4895,2104,377.913,678.713,091.192,597.492,182.651,834.06
Operating Cash Flow 7452,0001,6231,164753.60633.24532.10447.12375.71315.71
Capital Expenditure -306-309-83-31-85.54-71.88-60.40-50.75-42.65-35.83
Free Cash Flow 4391,6911,5401,133668.06561.36471.71396.37333.07279.87
WACC
PV LFCF 668.06522407.88318.71249.03194.59
SUM PV LFCF 1,692.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.54
Free cash flow (t + 1) 285.47
Terminal Value 5,152.88
Present Value of Terminal Value 3,582.61

Intrinsic Value

Enterprise Value 5,274.82
Net Debt 1,402
Equity Value 3,872.82
Shares Outstanding 9.77
Equity Value Per Share 396.28