Discounted Cash Flow (DCF) Analysis Levered

Chesapeake Energy Corporation (CHK)

$82.78

+0.73 (+0.89%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.18 | 82.78 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 8,4895,2107,30111,4437,7758,283.988,826.279,404.0710,019.6910,675.61
Revenue (%)
Operating Cash Flow 1,6231,1641,7884,1252,3802,197.072,340.902,494.142,657.412,831.38
Operating Cash Flow (%)
Capital Expenditure -83-31-735-1,823-1,829-846.54-901.96-961-1,023.91-1,090.94
Capital Expenditure (%)
Free Cash Flow 1,5401,1331,0532,3025511,350.531,438.941,533.131,633.501,740.43

Weighted Average Cost Of Capital

Share price $ 82.78
Beta 0.483
Diluted Shares Outstanding 142,976
Cost of Debt
Tax Rate 22.39
After-tax Cost of Debt 4.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.542
Total Debt 2,112
Total Equity 11,835,553.28
Total Capital 11,837,665.28
Debt Weighting 0.02
Equity Weighting 99.98
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 8,4895,2107,30111,4437,7758,283.988,826.279,404.0710,019.6910,675.61
Operating Cash Flow 1,6231,1641,7884,1252,3802,197.072,340.902,494.142,657.412,831.38
Capital Expenditure -83-31-735-1,823-1,829-846.54-901.96-961-1,023.91-1,090.94
Free Cash Flow 1,5401,1331,0532,3025511,350.531,438.941,533.131,633.501,740.43
WACC
PV LFCF 1,267.621,267.701,267.771,267.851,267.93
SUM PV LFCF 6,338.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.54
Free cash flow (t + 1) 1,749.13
Terminal Value 28,959.18
Present Value of Terminal Value 21,097.10

Intrinsic Value

Enterprise Value 27,435.97
Net Debt 1,033
Equity Value 26,402.97
Shares Outstanding 142,976
Equity Value Per Share 0.18