Discounted Cash Flow (DCF) Analysis Levered
Cummins Inc. (CMI)
$194.11
+0.58 (+0.30%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 20,428 | 23,771 | 23,571 | 19,811 | 24,021 | 25,271.44 | 26,586.97 | 27,970.99 | 29,427.05 | 30,958.91 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,277 | 2,378 | 3,181 | 2,722 | 2,256 | 2,920.23 | 3,072.25 | 3,232.17 | 3,400.43 | 3,577.44 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -587 | -784 | -775 | -575 | -786 | -790.19 | -831.33 | -874.60 | -920.13 | -968.03 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,690 | 1,594 | 2,406 | 2,147 | 1,470 | 2,130.03 | 2,240.92 | 2,357.57 | 2,480.30 | 2,609.41 |
Weighted Average Cost Of Capital
Share price | $ 194.11 |
---|---|
Beta | 1.020 |
Diluted Shares Outstanding | 149 |
Cost of Debt | |
Tax Rate | 22.54 |
After-tax Cost of Debt | 2.07% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.701 |
Total Debt | 4,159 |
Total Equity | 28,922.39 |
Total Capital | 33,081.39 |
Debt Weighting | 12.57 |
Equity Weighting | 87.43 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 20,428 | 23,771 | 23,571 | 19,811 | 24,021 | 25,271.44 | 26,586.97 | 27,970.99 | 29,427.05 | 30,958.91 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,277 | 2,378 | 3,181 | 2,722 | 2,256 | 2,920.23 | 3,072.25 | 3,232.17 | 3,400.43 | 3,577.44 |
Capital Expenditure | -587 | -784 | -775 | -575 | -786 | -790.19 | -831.33 | -874.60 | -920.13 | -968.03 |
Free Cash Flow | 1,690 | 1,594 | 2,406 | 2,147 | 1,470 | 2,130.03 | 2,240.92 | 2,357.57 | 2,480.30 | 2,609.41 |
WACC | ||||||||||
PV LFCF | 1,990.87 | 1,957.67 | 1,925.02 | 1,892.91 | 1,861.34 | |||||
SUM PV LFCF | 9,627.82 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.99 |
Free cash flow (t + 1) | 2,661.60 |
Terminal Value | 53,338.64 |
Present Value of Terminal Value | 38,047.49 |
Intrinsic Value
Enterprise Value | 47,675.31 |
---|---|
Net Debt | 1,567 |
Equity Value | 46,108.31 |
Shares Outstanding | 149 |
Equity Value Per Share | 309.45 |