Discounted Cash Flow (DCF) Analysis Levered
Chesapeake Energy Corporation (CHK)
$79.9
-1.48 (-1.82%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 10,231 | 8,489 | 5,210 | 3,760.24 | 2,713.89 | 1,958.71 | 1,413.67 | 1,020.29 | 736.38 | 531.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,000 | 1,623 | 1,164 | 764.69 | 551.91 | 398.33 | 287.49 | 207.49 | 149.75 | 108.08 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -309 | -83 | -31 | -57.57 | -41.55 | -29.99 | -21.64 | -15.62 | -11.27 | -8.14 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,691 | 1,540 | 1,133 | 707.12 | 510.36 | 368.34 | 265.84 | 191.87 | 138.48 | 99.94 |
Weighted Average Cost Of Capital
| Share price | $ 79.9 |
|---|---|
| Beta | 0.625 |
| Diluted Shares Outstanding | 145.96 |
| Cost of Debt | |
| Tax Rate | -35.20 |
| After-tax Cost of Debt | 5.13% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.697 |
| Total Debt | 3,179 |
| Total Equity | 11,662.28 |
| Total Capital | 14,841.28 |
| Debt Weighting | 21.42 |
| Equity Weighting | 78.58 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 10,231 | 8,489 | 5,210 | 3,760.24 | 2,713.89 | 1,958.71 | 1,413.67 | 1,020.29 | 736.38 | 531.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,000 | 1,623 | 1,164 | 764.69 | 551.91 | 398.33 | 287.49 | 207.49 | 149.75 | 108.08 |
| Capital Expenditure | -309 | -83 | -31 | -57.57 | -41.55 | -29.99 | -21.64 | -15.62 | -11.27 | -8.14 |
| Free Cash Flow | 1,691 | 1,540 | 1,133 | 707.12 | 510.36 | 368.34 | 265.84 | 191.87 | 138.48 | 99.94 |
| WACC | ||||||||||
| PV LFCF | 664.84 | 451.15 | 306.14 | 207.74 | 140.97 | 95.66 | 64.91 | |||
| SUM PV LFCF | 922.42 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.36 |
| Free cash flow (t + 1) | 101.94 |
| Terminal Value | 2,338.16 |
| Present Value of Terminal Value | 1,717.84 |
Intrinsic Value
| Enterprise Value | 2,640.26 |
|---|---|
| Net Debt | 3,049 |
| Equity Value | -408.74 |
| Shares Outstanding | 145.96 |
| Equity Value Per Share | -2.80 |