Discounted Cash Flow (DCF) Analysis Levered
Cleveland-Cliffs Inc. (CLF)
$15.915
-0.34 (-2.12%)
All numbers are in Millions, Currency in USD
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 | 2,332.40 | 1,989.90 | 5,354 | 20,444 | 22,989 | 48,775.09 | 103,484.68 | 219,560.41 | 465,834.90 | 988,348.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 478.50 | 562.50 | -261 | 2,992.20 | 3,364.69 | 7,138.76 | 15,146.10 | 32,135.04 | 68,179.97 | 144,655.44 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -296.10 | -656 | -525 | -3,779.91 | -4,250.46 | -9,018.08 | -19,133.39 | -40,594.75 | -86,128.70 | -182,736.74 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 182.40 | -93.50 | -786 | -787.71 | -885.77 | -1,879.32 | -3,987.29 | -8,459.72 | -17,948.73 | -38,081.30 |
Weighted Average Cost Of Capital
| Share price | $ 15.915 |
|---|---|
| Beta | 2.204 |
| Diluted Shares Outstanding | 557.46 |
| Cost of Debt | |
| Tax Rate | 25.67 |
| After-tax Cost of Debt | 4.83% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.148 |
| Total Debt | 4,249 |
| Total Equity | 8,872.02 |
| Total Capital | 13,121.02 |
| Debt Weighting | 32.38 |
| Equity Weighting | 67.62 |
| 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 | 2,332.40 | 1,989.90 | 5,354 | 20,444 | 22,989 | 48,775.09 | 103,484.68 | 219,560.41 | 465,834.90 | 988,348.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 478.50 | 562.50 | -261 | 2,992.20 | 3,364.69 | 7,138.76 | 15,146.10 | 32,135.04 | 68,179.97 | 144,655.44 |
| Capital Expenditure | -296.10 | -656 | -525 | -3,779.91 | -4,250.46 | -9,018.08 | -19,133.39 | -40,594.75 | -86,128.70 | -182,736.74 |
| Free Cash Flow | 182.40 | -93.50 | -786 | -787.71 | -885.77 | -1,879.32 | -3,987.29 | -8,459.72 | -17,948.73 | -38,081.30 |
| WACC | ||||||||||
| PV LFCF | -1,691.10 | -3,228.61 | -6,163.99 | -11,768.16 | -22,467.52 | |||||
| SUM PV LFCF | -45,319.37 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.13 |
| Free cash flow (t + 1) | -38,842.92 |
| Terminal Value | -425,442.74 |
| Present Value of Terminal Value | -251,006.25 |
Intrinsic Value
| Enterprise Value | -296,325.62 |
|---|---|
| Net Debt | 4,223 |
| Equity Value | -300,548.62 |
| Shares Outstanding | 557.46 |
| Equity Value Per Share | -539.14 |