Discounted Cash Flow (DCF) Analysis Levered
CMS Energy Corporation (CMS)
$53.11
+0.41 (+0.78%)
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 | 6,873 | 6,845 | 6,680 | 7,329 | 8,596 | 9,115.74 | 9,666.90 | 10,251.39 | 10,871.22 | 11,528.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,703 | 1,790 | 1,276 | 1,819 | 855 | 1,910.59 | 2,026.11 | 2,148.61 | 2,278.52 | 2,416.29 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,220 | -2,236 | -2,448 | -2,209 | -2,481 | -2,928.27 | -3,105.32 | -3,293.07 | -3,492.18 | -3,703.33 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -517 | -446 | -1,172 | -390 | -1,626 | -1,017.68 | -1,079.21 | -1,144.46 | -1,213.66 | -1,287.04 |
Weighted Average Cost Of Capital
| Share price | $ 53.11 |
|---|---|
| Beta | 0.369 |
| Diluted Shares Outstanding | 289.50 |
| Cost of Debt | |
| Tax Rate | 7.21 |
| After-tax Cost of Debt | 3.12% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.316 |
| Total Debt | 15,428 |
| Total Equity | 15,375.34 |
| Total Capital | 30,803.35 |
| Debt Weighting | 50.09 |
| Equity Weighting | 49.91 |
| 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 | 6,873 | 6,845 | 6,680 | 7,329 | 8,596 | 9,115.74 | 9,666.90 | 10,251.39 | 10,871.22 | 11,528.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,703 | 1,790 | 1,276 | 1,819 | 855 | 1,910.59 | 2,026.11 | 2,148.61 | 2,278.52 | 2,416.29 |
| Capital Expenditure | -2,220 | -2,236 | -2,448 | -2,209 | -2,481 | -2,928.27 | -3,105.32 | -3,293.07 | -3,492.18 | -3,703.33 |
| Free Cash Flow | -517 | -446 | -1,172 | -390 | -1,626 | -1,017.68 | -1,079.21 | -1,144.46 | -1,213.66 | -1,287.04 |
| WACC | ||||||||||
| PV LFCF | -971.90 | -984.31 | -996.87 | -1,009.59 | -1,022.47 | |||||
| SUM PV LFCF | -4,985.14 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.71 |
| Free cash flow (t + 1) | -1,312.78 |
| Terminal Value | -48,442.18 |
| Present Value of Terminal Value | -38,484.24 |
Intrinsic Value
| Enterprise Value | -43,469.38 |
|---|---|
| Net Debt | 15,264 |
| Equity Value | -58,733.38 |
| Shares Outstanding | 289.50 |
| Equity Value Per Share | -202.88 |