Discounted Cash Flow (DCF) Analysis Levered
Cummins Inc. (CMI)
$223.95
+0.20 (+0.09%)
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 | 23,771 | 23,571 | 19,811 | 24,021 | 28,074 | 29,571.07 | 31,147.98 | 32,808.98 | 34,558.55 | 36,401.42 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,378 | 3,181 | 2,722 | 2,256 | 1,962 | 3,171.17 | 3,340.28 | 3,518.40 | 3,706.02 | 3,903.65 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -784 | -775 | -575 | -786 | -916 | -947.66 | -998.20 | -1,051.43 | -1,107.49 | -1,166.55 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,594 | 2,406 | 2,147 | 1,470 | 1,046 | 2,223.51 | 2,342.08 | 2,466.97 | 2,598.53 | 2,737.10 |
Weighted Average Cost Of Capital
Share price | $ 223.95 |
---|---|
Beta | 1.069 |
Diluted Shares Outstanding | 149 |
Cost of Debt | |
Tax Rate | 23.70 |
After-tax Cost of Debt | 3.22% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.265 |
Total Debt | 7,855 |
Total Equity | 33,368.55 |
Total Capital | 41,223.55 |
Debt Weighting | 19.05 |
Equity Weighting | 80.95 |
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 | 23,771 | 23,571 | 19,811 | 24,021 | 28,074 | 29,571.07 | 31,147.98 | 32,808.98 | 34,558.55 | 36,401.42 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,378 | 3,181 | 2,722 | 2,256 | 1,962 | 3,171.17 | 3,340.28 | 3,518.40 | 3,706.02 | 3,903.65 |
Capital Expenditure | -784 | -775 | -575 | -786 | -916 | -947.66 | -998.20 | -1,051.43 | -1,107.49 | -1,166.55 |
Free Cash Flow | 1,594 | 2,406 | 2,147 | 1,470 | 1,046 | 2,223.51 | 2,342.08 | 2,466.97 | 2,598.53 | 2,737.10 |
WACC | ||||||||||
PV LFCF | 2,056.71 | 2,003.87 | 1,952.39 | 1,902.23 | 1,853.37 | |||||
SUM PV LFCF | 9,768.58 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.11 |
Free cash flow (t + 1) | 2,791.84 |
Terminal Value | 45,692.96 |
Present Value of Terminal Value | 30,939.97 |
Intrinsic Value
Enterprise Value | 40,708.55 |
---|---|
Net Debt | 5,754 |
Equity Value | 34,954.55 |
Shares Outstanding | 149 |
Equity Value Per Share | 234.59 |